ACWA Power, Water and Electricity Holding Company (Badeel) and Saudi Aramco Power Company (SAPCO) have announced an investment of approximately $8.3bn (SAR31bn) for the construction of seven new renewable energy facilities in Saudi Arabia. The signing of power purchase agreements took place in the presence of the Minister of Energy, Prince AbdulAziz bin Salman bin AbdulAziz Al Saud. These new projects, bringing together five photovoltaic solar plants and two wind farms, will increase total installed capacity to 15,000 MW across the country.
Strategic deployment within the national programme framework
The plants will be spread across several provinces: Bisha (3000 MW, Asir), Humaij (3000 MW, Madinah), Khulis (2000 MW, Makkah), Afif1 (2000 MW, Riyadh), Afif2 (2000 MW, Riyadh) for solar photovoltaic, as well as Starah (2000 MW, Riyadh) and Shaqra (1000 MW, Riyadh) for wind energy. The consortium, composed of Badeel, ACWA Power and SAPCO, has secured power purchase agreements with the Saudi Power Procurement Company (SPPC), designated as the procurer and developer.
Targeting 70% of national renewable capacity by 2030
These investments form part of the Public Investment Fund (PIF) strategy to deliver 70% of national renewable capacity targets by 2030, under the Ministry of Energy’s direction. According to Arab News reported on July 14, the plants are expected to be commissioned in the second half of 2027 and the first half of 2028, with financial closures set for the third quarter of 2025.
The projects represent the largest operation under the National Renewable Energy Programme (NREP) since its launch. Marco Arcelli, Chief Executive Officer of ACWA Power, told Arab News: “This landmark agreement marks a major step in Saudi Arabia’s energy transformation, with an unprecedented mobilisation of resources and partnerships.”
Expansion of renewables portfolio and industrial participation
Meanwhile, ACWA Power’s solar and wind portfolio in Saudi Arabia now includes 21 projects for a combined capacity of 34 GW. Globally, the group claims 51.9 GW of renewable assets in operation or under development. Badeel, a subsidiary of the Public Investment Fund, and SAPCO, an Aramco subsidiary, also co-invest in other national initiatives, bringing their total joint investments to $17bn (SAR63.75bn) for 28.6 GW.
According to Sultan AlNabulsi, Acting Chief Executive Officer of Badeel, “this partnership will strengthen the country’s energy resilience while boosting opportunities within the national supply chain.”
Waleed Al Saif, Aramco’s Senior Vice President for New Energies, told Arab News that the initiative will increase the value of national natural resources and expand the group’s new energies portfolio.
