PIF subsidiary Badeel and ACWA Power to develop the MENA region’s largest solar energy plant in Saudi Arabia

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The 2,060 MW solar PV IPP set to be developed in Makkah province, western Saudi Arabia
A joint company was established under the name of “Shuaibah Two Electrical Energy Company” to develop the project
The project is expected to be completed by Q4 2025
The project marks an important milestone for NREP that was initiated by MoE and aims to develop 70% of the nation’s renewable energy through PIF by 2030

Riyadh, KSA: The Water and Electricity Holding Company (Badeel), a wholly owned company by the Public Investment Fund (PIF), and ACWA Power, a leading Saudi developer, investor, and operator of power generation, water desalination and green hydrogen plants worldwide, today signed power purchase agreements to develop a 2,060 MW solar photovoltaic (PV) plant in Al Shuaibah, Makkah province (the project). This is the largest facility of its kind in the Middle East to date. The project is expected to achieve commercial operation by Q4 2025.

The project will be jointly owned by Badeel and ACWA Power. Each company will hold a 50% equity stake through the establishment of ” Shuaibah Two Electrical Energy Company”, a joint company dedicated to the development of the project.

In the same context, the Shuaibah Two Electrical Energy Company announced the signing of the power purchase agreement for the project with the Saudi Power Procurement Company (SPPC), the offtaker within this project that is a concrete representation of the energy transition in play—a giga scale development in sustainable energy that will play a key role in translating Saudi Vision 2030 goals.

Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF, said,” This marks a key achievement toward PIF’s commitment to develop 70% of Saudi Arabia’s renewable energy by 2030. Utilities and Renewables is one of PIF’s priority sectors as part of its domestic strategy, which focuses on unlocking the capabilities of promising sectors to enhance Saudi Arabia’s efforts in diversifying revenue sources”.

“Under the guidance of our visionary leadership and the Ministry of Energy, Saudi Arabia continues to accelerate its ambitious plans for diversifying its energy mix to include renewable energy. It is a great honour to partner with Badeel and SPPC in developing this milestone project which will set a benchmark for sustainable energy development in the region,” said Mohammad Abunayyan, Chairman, ACWA Power.

“Solar power is a key component in unlocking positive economic, environmental and social outcomes for the betterment of communities across our great nation. We remain committed to developing local capabilities in technology, supply chain, and talent and ensure they are realised to their fullest potential,” he added.

Badeel and ACWA Power will build, own, and operate Al Shuaibah 2 facility and the electricity produced will be sold to SPPC. When complete, it will power 350,000 homes.

Shuaibah 2 is ACWA Power’s sixth solar energy facility in Saudi Arabia. In addition, the ACWA Power’s KSA portfolio comprises 13 power, water desalination and green hydrogen plants. Badeel and ACWA Power are also developing the Sudair Solar PV 1500 MW project; which was the first cornerstone renewable energy project in PIF’s program.

About ACWA Power

ACWA Power (TADAWUL:2082) is a developer, investor and operator of power generation, desalinated water and green hydrogen production plants. Registered and established in 2004 in Riyadh, Saudi Arabia; ACWA Power employs over 3,900 people and is currently present in 13 countries in the Middle East, Africa, Central Asia and Southeast Asia. ACWA Power’s portfolio comprises 67 projects in operation, advanced development, or construction with an investment value of SAR 249.2 billion, with capacity to generate 42.7 GW of power and manage 6.4 million m3/day of desalinated water per day, delivered on a bulk basis to address the needs of state utilities and industries on long term, off-taker contracts under utility services outsourcing and Public-Private-Partnership models.
ACWA Power’s mission is to deliver electricity and desalinated water reliably and responsibly at a low cost, thereby contributing effectively to the sustainable, social and economic development of communities.