Saudi Arabia's Public Investment Fund (PIF) and ACWA Power Co have sealed a deal for the development and operation of three solar photovoltaic (PV) projects in the kingdom with a combined capacity of 4.55 GWac.
The power purchase agreements (PPAs) were signed with the Saudi Power Procurement Company (SPPC), PIF said on Sunday.
The new projects, to be jointly owned by ACWA Power and the fund's wholly-owned subsidiary Badeel, include the Ar Rass 2 scheme with a capacity of 2 GWac, Saad 2 of 1.125 GWac and the 1.425-GWac Al Kahfah development. Their combined value is estimated at SAR 12.2 billion (USD 3.25bn/EUR 3bn).
When operational, the three solar parks are expected to supply about 750,000 households with clean electricity.
Financial close for these projects should be reached by the third quarter of 2023.
“The three new solar projects are part of PIF’s commitment to develop 70% of Saudi Arabia’s renewable energy by 2030, in line with the National Renewable Energy Program. Renewable Energy is one of PIF’s priority sectors, with a focus on unlocking the capabilities of promising sectors and enabling the private sector to enhance Saudi Arabia’s efforts in diversifying the economy,” commented Mohammed AlBalaihed, Head of Energy & Utilities at PIF.
In addition to the three new projects, PIF is developing also the 1.5-GW Sudair solar project and the Shuaibah 2 solar park of about 2 GW in Saudi Arabia.
The five large-scale projects under development aim to add 8 GW of generation capacity and support Saudi Arabia's ambition to increase the share of renewables in the energy mix to around 50% by 2030. The other half of the energy mix should be supplied through gas-fueled power plants.