In Al Shuaibah, Badeel and ACWA Power sign power purchase agreements to develop a solar plant.
A major project
In Al Shuaibah, in the province of Makkah, Badeel and ACWA Power want to develop a solar power plant. The project will have a capacity of 2060MW. In addition, it is the largest facility of its kind in the Middle East to date.
The project in Al Shuaibah is expected to be operational by the fourth quarter of 2025. Badeel and ACWA Power jointly own the project. Each company will hold a 50% stake through the creation of “Shuaibah Two Electrical Energy Company”, a joint venture dedicated to the project. In addition, Badeel is a wholly owned company of the Public Investment Fund (PIF).
A priority sector
With this project the PIF demonstrates its commitment to develop 70% of Saudi Arabia’s renewable energy by 2030. Utilities and renewable energy are one of PIF’s priority sectors in its national strategy. For example, Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF, says:
“This is a major achievement in the FIP’s commitment to develop 70% renewable energy in Saudi Arabia by 2030. Utilities and renewable energy are one of the FIP’s priority sectors under its national strategy, which aims to unlock capacity in promising sectors to enhance Saudi Arabia’s efforts to diversify its revenue sources.”
Badeel and ACWA Power will build, own and operate the Al Shuaibah 2 facility. The electricity produced will be sold to PPSC. In addition, the project will supply 350,000 homes.
