Badeel and ACWA Power partner on Saudi Arabian solar plant
Published by Abi Larkin,
Editorial Assistant
Energy Global,
The Water and Electricity Holding Company (Badeel), a wholly owned company by the Public Investment Fund (PIF), and ACWA Power have signed a power purchase agreement (PPAs) to develop a 2060 MW solar photovoltaic (PV) plant in Al Shuaibah, Makkah province, Saudi Arabia (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 4Q25.
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 PPA 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.”
Mohammad Abunayyan, ACWA Power Chairman, stated: “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.”
“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 programme.
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Read the article online at: https://www.energyglobal.com/solar/30112022/badeel-and-acwa-power-partner-on-saudi-arabian-solar-plant/
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