Saudi Arabia’s renewable energy sector is set for a significant boost as ACWA Power, the Water and Electricity Holding Company (Badeel), and Saudi Aramco Power Company (SAPCO) have inked agreements to develop 15GW of renewable energy projects across the kingdom. The trio will invest over $8.3bn in five solar photovoltaic plants and two large-scale wind farms, marking a substantial step in the country’s National Renewable Energy Programme.
The projects, located in various provinces, include the Bisha (3GW) solar plant in Asir, Humaij (3GW) in Madinah, Khulis (2GW) in Makkah, and Afif1 (2GW) and Afif2 (2GW) in Riyadh. The wind farms, Starah (2GW) and Shaqra (1GW), will also be situated in Riyadh province. These initiatives are expected to become operational between the second half of 2027 and the first half of 2028, with financial close anticipated by the third quarter of 2025.
ACWA Power chief executive Marco Arcelli hailed the agreement as a “significant milestone” in Saudi Arabia’s journey towards a more sustainable energy landscape. He emphasized the strategic importance of the deal, stating, “As the largest and most comprehensive agreement to date under the National Renewable Energy Programme (NREP), it reflects our dedication to collaborate with the Saudi Power Procurement Company (SPPC), PIF and Aramco as we collectively advance this step shift towards a more sustainable energy future.”
Sultan AlNabulsi, acting chief executive at Badeel, underscored the agreement’s role in enhancing the resilience of the energy sector and boosting the country’s investment attractiveness. He noted, “This investment will enhance the resilience of the energy sector nationally, positively impacting all other vital sectors of the national economy.”
Waleed Al Saif, Aramco senior vice president of new energies, expressed delight in expanding the company’s footprint in the renewables business through SAPCO. He highlighted the collaborative effort, stating, “In partnership with ACWA Power and Badeel, we are helping build Saudi Arabia’s renewable energy infrastructure. In doing so, we are laying the foundations for a more sustainable power network.”
This development is poised to accelerate Saudi Arabia’s transition to renewable energy, potentially influencing other nations in the region to follow suit. The substantial investment and the scale of the projects underscore the growing importance of renewable energy in the global energy mix. As Saudi Arabia moves forward with these initiatives, it could set a precedent for other countries looking to diversify their energy portfolios and reduce their carbon footprint. The collaboration between ACWA Power, Badeel, and SAPCO also highlights the potential for public-private partnerships to drive significant progress in the renewable energy sector.