Saudi Arabian developer ACWA Power entered into a partnership with Water and Electricity Holding Company Badeel to develop a 2,060 MW solar photovoltaic plant.
The duo has already signed power purchase agreements for the PV development. As per the companies, this project is the largest facility of its kind in the Middle East.
It has been informed that the project will be based in Al Shuaibah, Makkah province.
According to the companies, the project will be jointly owned by Badeel and ACWA Power with a 50 percent equity stake.
For this, they have formed a joint company for the development of the project named Shuaibah Two Electrical Energy Company. This company had already inked the power purchase agreement with the Saudi Power Procurement Company.
It has been reported that Badeel and ACWA Power will build and operate Al Shuaibah 2 facility and the generated power will be sold to SPPC. The project is likely to achieve commercial operation by 2025.
Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF, was quoted in a statement, “This marks a key achievement toward PIF’s commitment to develop 70 percent of Saudi Arabia’s renewable energy by 2030.”
He further stated that utilities and renewables are the company’s priority sectors to help Saudi Arabia achieve sustainable energy development.
Meanwhile, ACWA Power Chairman Mohammad Abunayyan is of the view that Saudi Arabia has been enhancing its plans for “diversifying its energy mix to include renewable energy.”
According to ACWA Power, Shuaibah 2 is its sixth solar energy facility in Saudi Arabia.