Saudi Arabia renewable energy's evolving landscape

A consortium comprising ACWA Power, Water & Electricity Holding Company (Badeel), and Saudi Aramco Power Company (SAPCO) has signed power purchase agreements (PPAs) with the Saudi Power Procurement Company (SPPC) for seven renewable energy projects. These projects, valued at $8.3 billion, will generate 15,000 MW of power, consisting of 12,000 MW from solar photovoltaic plants and 3,000 MW from wind energy plants. Financial closure is anticipated by Q3 2025, with operations expected to commence between late 2027 and early 2028.

The projects are part of Saudi Arabia’s National Renewable Energy Program (NREP), overseen by the Ministry of Energy, and align with the Public Investment Fund’s (PIF) commitment to develop 70% of the Kingdom’s renewable energy target capacity by 2030. ACWA Power’s renewable portfolio in Saudi Arabia now includes 21 projects, totaling over 34 GW of capacity, while its global portfolio stands at 51.9 GW. The PIF, ACWA Power’s largest shareholder with a 44% stake, wholly owns Badeel and holds a 16% stake in Aramco. To support its growth, ACWA Power is raising $1.9 billion through a rights issue, with 75-85% of proceeds allocated to funding current and upcoming projects, up to 20% for potential mergers and acquisitions, and the remainder for corporate activities and early-stage project development. Saudi Arabia’s burgeoning renewables energy sector presents ample opportunities for U.S. companies specialized in providing technologies and solutions in the sector.

For more information on potential commercial opportunities on the energy/renewables sector in Saudi Arabia, contact the Foreign Commercial Service in Saudi Arabia at office.dhahran@trade.gov or Mohammed Shujauddin, Senior Commercial Specialist at Mohammed.Shujauddin@trade.gov