ACWA Power Secures Financing for ACWA Power Renewables Projects
ACWA Power, a leading renewable energy developer in Saudi Arabia, has achieved a major milestone by securing $5.9 billion in debt financing from a consortium of local, regional, and international lenders. This substantial funding is part of an $8.2 billion investment to support the development of seven massive renewable energy projects with a combined capacity of 15 gigawatts (GW). The projects are a joint effort between ACWA Power, the Water and Electricity Holding Company (Badeel), and the Saudi Aramco Power Company (SAPCO).
Significance of the ACWA Power Renewables Financing
This landmark financing package will directly fund the development of five large-scale solar plants and two wind farms across Saudi Arabia. The portfolio includes the Bisha (3 GW solar), Humaij (3 GW solar), Khulis (2 GW solar), Afif1 (2 GW solar), and Afif2 (2 GW solar) projects, alongside the Starah (2 GW wind) and Shaqra (1 GW wind) projects. Located across the Asir, Madinah, Makkah, and Riyadh provinces, these facilities are expected to begin commercial operations between the second half of 2027 and the first half of 2028.
The deal builds upon the success of previous ventures, such as the recently launched Al-Shuaibah solar park, and reflects soaring confidence from international financial institutions in Saudi Arabia’s energy transition. It underscores the Kingdom’s commitment to diversifying its energy mix and reducing its long-standing reliance on fossil fuels.
Saudi Arabia’s Renewable Energy Goals with ACWA Power Renewables
Saudi Arabia has set ambitious renewable energy targets under its Vision 2030 framework, aiming to generate 50% of its electricity from renewable sources by the end of the decade. This new wave of projects is a critical step toward that goal. The involvement of major national players like Aramco is pivotal in accelerating the growth of Saudi solar capacity.
The Kingdom is rapidly establishing itself as a key player in the clean energy transition, a trend that is reflected in the broader Global Solar Report. This financing will further cement its position as a global leader in renewable energy development and investment.
Benefits of the ACWA Power Renewables Financing
The funding will enable ACWA Power and its partners to fast-track the development of these 15 GW of projects, directly contributing to the Kingdom’s renewable energy targets. The scale of this undertaking is immense, relying on a sophisticated supply chain and a deep understanding of the basics of solar panel manufacturing.
Beyond clean power generation, these projects are expected to create thousands of jobs, significantly reduce national greenhouse gas emissions, and bolster the country’s long-term energy security. The complex solar panel manufacturing process required for these utility-scale farms will also stimulate related industries and technological innovation within the Kingdom.
ACWA Power’s Role in the ACWA Power Renewables Energy Sector
ACWA Power is a formidable force in the renewable energy sector, with a portfolio that extends far beyond Saudi Arabia. The company has developed over 30 GW of renewable energy projects across the Middle East, Africa, and Asia, including significant contributions to the Jordanian solar market. This new financing will not only support ACWA Power’s continued growth but also solidify its role as a key enabler of the global energy transition.
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