ACWA Power secures financial close for 2 wind, 5 solar projects in Saudi Arabia

ACWA Power says commercial operations for the Starah wind IPP, Al-Humaij solar PV plant, and Bisha solar PV plant are expected in Q1 2028

ACWA Power Co. announced the financial close of two major wind power projects, Starah and Shaqra, located in the central region of Saudi Arabia, with production capacities of 2,000 MW and 1,000 MW, respectively, according to a Tadawul statement today.

The financing amounts to SAR 5.44 billion (USD 1.45 billion) for a tenure of about 27 years, and aims to support the development, design, construction, and operation of the two wind power plants, the statement said.

The financing agreements were signed by Starah First Renewable Energy Co. and Shaqra First Renewable Energy Co., while the financing is secured by a limited guarantee over ACWA Power’s reserve liquidity share.

The lenders consist of a consortium of local and international banks, including Alinma Bank, Bank of China, China Minsheng Banking Corporation, Eurobank, Industrial and Commercial Bank of China, KfW IPEX-Bank, Mizuho Bank, Natixis, Société Générale, Standard Chartered, and Sumitomo Mitsui Trust Bank.

In a separate announcement, ACWA Power said it also achieved financial close for five major solar PV projects — Afif 1, Afif 2, Al-Humaij, Bisha, and Khulais — located across central, western, and southern Saudi Arabia, with production capacities of 2,000 MW, 2,000 MW, 3,000 MW, 3,000 MW, and 2,000 MW, respectively.

The financing agreements were signed by the respective project companies: Afif First Renewable Energy Co., Afif Second Renewable Energy Co., Al-Humaij First Renewable Energy Co., Bisha First Renewable Energy Co., and Khulais First Renewable Energy Co.

The lenders comprise a consortium of local, regional, and international banks, including Ajman Bank, Arab Investment and Foreign Trade Bank, Alinma Bank, Arab National Bank, China Construction Bank, China Minsheng Banking Corporation, Emirates NBD, Eurobank, First Abu Dhabi Bank, HSBC, Industrial and Commercial Bank of China, KfW IPEX-Bank, Mizuho Bank, Piraeus Bank, Saudi Awwal Bank (SAB), Saudi National Bank (SNB), Standard Chartered, and Sumitomo Mitsui Trust Bank.

The financing totals SAR 16.9 billion (USD 4.5 billion) for about 27 years, secured by a limited guarantee over ACWA Power’s standby equity. The funds will support the development, design, construction, and operation of the five solar PV plants.

ACWA Power holds a 35.1% stake in each project company, while Water and Electricity Holding Co. (Badeel) owns 34.9% and Saudi Aramco Power Co. (SAPCO) holds 30%. Related parties include Badeel, wholly owned by the Public Investment Fund (PIF), and Saudi National Bank (SNB).

ACWA Power had signed power purchase agreements in July with the Saudi Power Procurement Company — the principal buyer — for the Starah and Shaqra wind IPPs, as well as the Afif 1, Afif 2, Al-Humaij, Bisha, and Khulais solar PV IPPs, according to Argaam’s data.

Commercial operations for the Starah wind IPP, Al-Humaij solar PV plant, and Bisha solar PV plant are expected to begin in Q1 2028.