In a significant stride towards renewable energy, Saudi Arabia has achieved financial closure for a substantial renewable energy initiative led by a consortium comprising ACWA Power, Badeel, and Saudi Aramco Power Company (SAPCO). These entities have successfully secured 5.5 gigawatts (GW) in solar photovoltaic (PV) projects valued at $3.2 billion. Importantly, a sum of SAR 9.4 billion from various international and regional banks will predominantly finance this ambitious venture, indicating strong global confidence in the Kingdom’s renewable energy goals. The Saudi Power Procurement Company (SPPC) is set to purchase the electricity generated, ensuring a ready market for the produced energy.
The projects earmarked for this initiative include Haden (2 GW), Muwayh (1.5 GW) in Makkah, and Al-Khushaybi (2 GW) in Qassim. These facilities are slated for commercial operation by early 2027, marking a significant step forward in the country’s energy transformation agenda as outlined in its Vision 2030 plan. The plan aims for Saudi Arabia to generate 50% of its electricity from renewable sources, predominantly solar energy, by the end of the decade. This massive deployment mirrors other countries’ efforts, but with the Kingdom’s vast landscapes and abundant sunlight, it has the potential to become a global leader in solar energy production.
Vision 2030 and Future Prospects
Saudi Arabia has made a significant advancement in renewable energy by achieving financial closure for a major project led by a consortium of ACWA Power, Badeel, and Saudi Aramco Power Company (SAPCO). This team has successfully secured 5.5 gigawatts (GW) of solar photovoltaic (PV) projects worth $3.2 billion. A notable aspect is the SAR 9.4 billion funding from diverse international and regional banks, highlighting strong global trust in the Kingdom’s renewable energy targets. The Saudi Power Procurement Company (SPPC) will purchase the generated electricity, ensuring a secure market for the energy produced.
The initiative includes projects in Haden (2 GW), Muwayh (1.5 GW) in Makkah, and Al-Khushaybi (2 GW) in Qassim. These facilities are expected to begin commercial operations by early 2027, marking a crucial step in the country’s Vision 2030 plan. Vision 2030 aims for Saudi Arabia to produce 50% of its electricity from renewable sources, mainly solar energy, by the decade’s end. While similar to other countries’ efforts, Saudi Arabia’s vast landscapes and ample sunshine position it to potentially lead globally in solar energy production.
