The Middle East will soon get the largest solar power plant powering 350,000 homes in Saudi Arabia. Power purchase agreements have already been signed by the Saudi utility company ACWA Power and the Water and Electricity Holding Company.
The 2,060 MW solar photovoltaic plant will be constructed in Al Shuaibah, Makkah province, and is expected to operate commercially by the fourth quarter of 2025.
The Water and Electricity Holding Company, also called Badeel and wholly controlled by the Public Investment Fund, will own the project in partnership with ACWA Power, with each company owning a 50% equity interest.
A newly established joint enterprise called Shuaibah Two Electrical Energy Co. will carry out the project.
“This marks a key achievement toward PIF’s commitment to developing 70 percent of Saudi Arabia’s renewable energy by 2030,” said Yazeed A. Al-Humied, deputy governor and head of MENA Investments at PIF.
The Shuaibah Two Electrical Energy Co. and the Saudi Power Procurement Co made a power purchase agreement.
The Shuaibah Two PV solar energy project, with a capacity of 2060 MW, will be developed, financed, built, owned, and operated as part of the $1.75 billion deal, which will spread out over 35 years.
The Al Shuaibah 2 project will be built, owned, and run by Badeel and ACWA Power, and the electricity it generates will be sold to SPPC.
With 13 power, water desalination, and green hydrogen facilities in its portfolio, ACWA Power’s sixth solar energy project in Saudi Arabia is called Shuaibah 2.
Loading the player...
Fast Company's Most Creative People in Business list comes to the Middle East