Saudi Arabia has made another significant advancement in its renewable energy objectives by signing power purchase agreements (PPAs) for seven large-scale clean energy projects, which together will generate a capacity of 15,000 megawatts (MW), as reported by Trend.

Source: Trend

The agreements were established between the Saudi Power Procurement Company (SPPC) and a consortium that includes ACWA Power, the Water and Electricity Holding Company (Badeel, a subsidiary of the Public Investment Fund), and Saudi Aramco Power Company (SAPCO).

These new initiatives, consisting of five solar photovoltaic (PV) plants and two wind farms, represent a combined investment of approximately $8.3 billion (SAR 31 billion). Upon completion, they are expected to contribute 12,000 MW of solar power and 3,000 MW of wind power to the national grid.

The facilities will be distributed across various regions in Saudi Arabia:

• Solar PV plants: Bisha (Asir), Humaij (Madinah), Khulis (Makkah), Afif1 and Afif2 (Riyadh)
• Wind farms: Starah and Shaqra (both located in Riyadh)

Construction is projected to be completed between the latter half of 2027 and the first half of 2028, with financial closure aimed for the third quarter of 2025.

These projects are a crucial component of the Kingdom’s National Renewable Energy Programme (NREP), spearheaded by the Ministry of Energy and aligned with Vision 2030, which aspires to generate 70% of Saudi Arabia’s renewable energy capacity through the Public Investment Fund (PIF).

ACWA Power CEO Marco Arcelli referred to the agreement as “a milestone” in promoting the Kingdom’s transition to sustainable energy. Meanwhile, Badeel’s acting CEO Sultan AlNabulsi highlighted the strategic significance for the national economy and private sector. Waleed Al Saif, Senior Vice President of New Energies at Aramco, noted that this initiative supports the company’s goal to enhance its renewable portfolio and reduce emissions.

With these new projects, ACWA Power’s solar and wind portfolio in Saudi Arabia has expanded to 21 projects, totaling over 34 GW of renewable capacity. Its global renewable energy portfolio now stands at 51.9 GW.