ACWA Power Secures $2.6 Billion Financing for Large-Scale Solar Projects in Saudi Arabia

ACWA Power has successfully secured financing agreements totaling 9.7 billion Saudi riyals ($2.6 billion) from a consortium of international banks for the development of three major photovoltaic (PV) solar projects in Saudi Arabia. This substantial investment marks a significant milestone in the expansion of the Kingdom's renewable energy sector.

The newly secured funding will be allocated to the development, design, construction, and operation of three large-scale solar power projects. Located in Makkah and Qassim Province, these projects include the Haden, Muwayh, and Al Khushaybi solar plants, which will contribute a combined capacity of 5,500 megawatts (MW) to the national grid.

Key Partners in Saudi Solar Energy Development

The solar projects are being developed by Buraiq Renewable Energy Company, Moya Renewable Energy Company, and Nabah Renewable Energy Company. These entities are owned jointly by ACWA Power, Badeel (a wholly owned subsidiary of the Public Investment Fund), and Saudi Aramco Power Company. This collaboration highlights the strategic partnership between key players in Saudi Arabia’s energy sector.

International Bank Consortium Supports Solar Energy Financing

The financing agreements were signed with a consortium of leading banks, including Banque Saudi Fransi, Emirates NBD, First Abu Dhabi Bank, HSBC, Mizuho Bank, Riyad Bank, Saudi National Bank, and Standard Chartered Bank. This international consortium's involvement underscores global confidence in Saudi Arabia’s renewable energy projects and their potential to transform the energy landscape.

Long-Term Renewable Energy Investment in Saudi Arabia

The funding for these solar projects is structured over a 27.3-year term, reflecting a long-term commitment to advancing Saudi Arabia's renewable energy goals. ACWA Power's guarantee is limited to its equity bridge loan and standby equity, showcasing a strategic approach to investment that balances growth with risk management.

Advancing Saudi Arabia's Vision 2030 with Renewable Energy

These solar projects align with Saudi Arabia’s Vision 2030, aiming to diversify the country’s energy mix and enhance the role of renewable energy. By investing in these large-scale solar initiatives, ACWA Power and its partners are playing a crucial role in driving the Kingdom towards a more sustainable and energy-efficient future.