Riyadh, August 20, 2023, In a significant development for Saudi Arabia's energy sector, ACWA Power, a prominent player in the energy transition, has joined forces with the Water and Electricity Holding Company (Badeel) and Saudi Aramco Power Company (SAPCO) to achieve a successful financial close for the Al Shuaibah 1 and Al Shuaibah 2 solar PV projects. These projects are set to make a substantial impact, generating a combined capacity of over 2.6 GW of clean electricity for the country. ACWA Power, a company listed on the Saudi stock exchange, has established itself as a leader in the energy transition, while Badeel is a wholly owned entity of the Public Investment Fund (PIF). SAPCO, on the other hand, is a fully owned subsidiary of Aramco, the national oil company of Saudi Arabia. This collaboration marks a significant milestone in Saudi Arabia's commitment to renewable energy and its efforts to diversify its energy mix. The successful completion of the financial close for the projects marks a significant milestone in the National Renewable Energy Program (NREP), a crucial initiative overseen by the Ministry of Energy. This achievement underscores the commitment of the Public Investment Fund (PIF) to advancing Saudi Arabia's renewable energy target capacity, with the ambitious goal of developing 70% of the country's capacity by 2030. In a significant development, the Saudi Power Procurement Company (SPPC) has emerged as the key procurer and offtaker for a series of projects. These projects, set to make a substantial impact, will be jointly owned by Badeel, ACWA Power, and SAPCO. Badeel will hold a 34.99% stake, while ACWA Power will have a 35.01% stake, and SAPCO will possess a 30% stake in these ventures. In a major development, a staggering amount of US$1.63 billion has been secured in senior debt financing for a prominent plant. This impressive sum comprises a Saudi Riyal-denominated loan of US$450 million from the National Development Fund, acting on behalf of the National Infrastructure Fund (currently in the process of being established). Additionally, a substantial US$1.18 billion commercial facility in US dollars has been obtained from a consortium of esteemed banks, including Bank Saudi Fransi, First Abu Dhabi Bank, Mizuho Bank, Riyad Bank, Saudi National Bank, Standard Chartered Bank, and Saudi Investment Bank. In a significant move, Aramco has recently announced its investment in the Al Shuaibah 1 and Al Shuaibah 2 solar PV projects through SAPCO. This marks the company's second participation in the National Renewable Energy Program, a clear indication of its commitment to sustainable energy initiatives. By aligning with this program, Aramco aims to achieve its ambitious goal of attaining net-zero operational scope-1 and scope-2 emissions by the year 2050. This investment showcases Aramco's dedication to reducing its environmental impact and embracing a greener future. In a groundbreaking collaboration, the Public Investment Fund (PIF) is joining forces with the Water and Electricity Holding Company (Badeel) to spearhead a series of ambitious projects. Leading the charge as the primary developer is ACWA Power, a renowned name in the industry. Together, they are set to undertake an impressive total of five National Renewable Energy Program (NREP) initiatives. These projects, boasting a combined capacity of 8 GW, are expected to attract a staggering investment of over US$6 billion from PIF and its esteemed partners. In a bid to bolster the local private sector, a number of ambitious projects have emerged on the horizon. Sudair, Al Shuaibah 2, Ar Rass 2, Al Kahfah, and Saad 2 are all geared towards empowering and assisting local businesses. These projects have set forth stringent requirements, mandating a substantial contribution of local content and the procurement of equipment, supplies, and services from local supply chains. The ultimate goal is to foster economic growth and development within the region. Located in Makkah Province's Al Shuaibah region, the Al Shuaibah PV 1 and Al Shuaibah PV 2 power plants are set to generate a substantial amount of electricity. With a capacity of 600 MW and 2,031 MW, respectively, these power plants have the potential to provide energy to around 450,000 households. In a groundbreaking development, a staggering sum of US$2.37 billion has been allocated for investment in the plant. This substantial financial commitment sets the stage for a momentous venture that is set to revolutionize the industry. Anticipated to commence operations in 2025, the plant's commercial activities are poised to make a significant impact on the market. In a statement regarding the financial close, ACWA Power's CEO, Marco Arcelli, expressed his enthusiasm for the milestone achieved. He emphasized the importance of securing financing for this pioneering project, as it signifies a major stride towards Saudi Arabia's ambitious clean energy objectives. Arcelli highlighted the project's alignment with the National Renewable Energy Program, which aims to generate half of the country's electricity from renewable sources by 2030. In a statement brimming with pride, the spokesperson expressed their deep satisfaction with the achievement, emphasizing their eagerness to collaborate closely with their esteemed partners, including PIF, Aramco, and other notable contributors. Their shared goal? To effectively bring about a future that is both enduring and environmentally responsible. In a recent statement, Husam Al-Ghailani, the CEO of Badeel, expressed his enthusiasm and satisfaction as the financial close for the Al Shuaibah 1 and Al Shuaibah 2 solar PV projects were achieved. Al-Ghailani emphasized that this accomplishment is a significant milestone for Badeel, providing them with the motivation to continue their efforts to support the growth of renewable energy in Saudi Arabia. He also highlighted the company's commitment to the Public Investment Fund's (PIF) goal of developing 70% of the country's renewable energy by 2030. Al-Ghailani believes that this commitment will not only contribute to diversifying Saudi Arabia's revenue sources but also enhance its prominent position in the renewable energy sector both domestically and globally. In a recent statement, Mohammed Al Qahtani, the President of Downstream at Aramco, expressed the company's commitment to environmental sustainability. Al Qahtani emphasized that Aramco's involvement in the Al Shuaibah PV 1 and Al Shuaibah PV 2 projects is in line with their ongoing efforts to mitigate their carbon footprint and pave the way for a greener and more sustainable future. In the quest to meet the ever-growing energy demands of our time, it is undeniable that oil and gas will continue to play a significant role. However, as we confront the pressing challenges of climate change, it is becoming increasingly clear that renewables will also have a crucial role to play in the transition toward a more sustainable energy future. In a significant development aimed at aiding Aramco in its pursuit of decarbonization goals, these projects have emerged as a noteworthy milestone. In a statement, Eng. Esmail bin Mohammad Alsallom, the Chief Executive Officer of the National Infrastructure Fund (NIF), expressed his pride in the significant contribution made by NIF to the Al Shuaibah Projects. This development marks a significant milestone in NIF's dedication to supporting the Kingdom's ambitious energy transition agenda. NIF has once again demonstrated its ability to customize its offering, allowing for substantial financing from prominent local and international financiers. This achievement aligns perfectly with the organization's core objective of expediting the implementation of vital infrastructure projects. ACWA Power's solar portfolio in Saudi Arabia has reached a significant milestone, surpassing a combined PV capacity of 12 GW with the recent inclusion of two new projects. This achievement highlights the company's commitment to expanding its renewable energy footprint in the region. In a recent development, three new projects have been added to the portfolio of PIF subsidiary Badeel. These projects, namely the 2 GW Ar Rass 2, 1.125 GW Saad 2, and 1.4 GW Al Kahfah solar plants, have garnered significant attention in the industry. ACWA Power boasts an impressive global portfolio of renewable energy capacity, which currently stands at a staggering 23.4 gigawatts (GW).
