ACWA Power inks PPAs for 7 solar, wind power projects

ACWA Power wind turbine

ACWA Power Co. signed power purchase agreements (PPAs) with the Saudi Power Procurement Co. (Principal Buyer) for two large-scale wind power plants in Saudi Arabia.

The agreements entail Starah (STR) plant with a production capacity of 2,000MW, and Shaqra (SHQ) plant with a production capacity of 1,000MW. Both projects are located in the Kingdom’s central region.

For more news and details on the projects

The deals were signed by Starah First Renewable Energy Co. and Shaqra First Renewable Energy Co., ACWA Power said in a statement to Tadawul.

The project companies are jointly owned by ACWA Power (35.1%), Water and Electricity Holding Co. (Badeel) (34.9%), and Saudi Aramco Power Co. (30%).

The total value of the two wind projects is estimated at SAR 8.6 billion, covering the development, financing, construction, ownership, and operation. Each project will have a contract term of 25 years. The financial impact will be determined and announced upon completion of the financing agreements.

In a separate statement to Tadawul, ACWA Power Co. said it signed other PPAs with the Saudi Power Procurement Co. (Principal Buyer) for five large-scale PV solar plants, namely Afif1, Afif2, Humaij, Bisha and Khulis. Located in the central, western and southern regions of Saudi Arabia, the plants have production capacities of 2,000MW, 2,000MW, 3,000MW, 3,000MW and 2,000MW of renewable power, respectively.

These agreements were signed by Afif One Renewable Energy Co., Afif Two Renewable Energy Co., Humaij One Renewable Energy Co., Bisha One Renewable Energy Co., and Khulis One Renewable Energy Co.

Upon financial close, ACWA Power’s effective shareholding in each project company will be 35.1%, while Badeel and Aramco Power will own 34.9% and 30%, respectively.

The total value of the five solar projects is SAR 22.5 billion, covering the development, financing, construction, ownership, and operation of the plants. Each project will be governed by a 25-year contract. The financial impact will be announced upon completion of the financing agreements.

It is worth noting that Badeel, a wholly owned subsidiary of the Public Investment Fund (PIF), is a related party in all the projects, holding a 34.9% stake in each project firm.