As part of its Vision 2030 strategy to diversify its economy and reduce dependence on fossil fuels, Saudi Arabia is rapidly expanding its renewable energy sector. The Kingdom has set ambitious targets to become a global leader in clean energy, with a goal to generate 50% of its electricity from renewable sources by the end of the decade.

In a significant step toward that goal, several major Saudi companies, including utilities giant ACWA Power and a subsidiary of Aramco, signed power purchase agreements on Sunday for clean energy projects with a combined capacity of 15 gigawatts. The deals represent a total investment of approximately $8.3 billion, according to the Saudi Press Agency.

ACWA Power secured seven agreements as the primary developer. The agency reported that the company is partnering with the Water and Electricity Holding Company (Badeel), a fully owned subsidiary of the Saudi Public Investment Fund (PIF), and Aramco Power, a unit of Saudi Aramco.

The projects include the development of five large-scale photovoltaic solar power plants in the cities of Aseer, Medina, Mecca, and Riyadh. In addition, two wind power projects will be built in the Riyadh region. These initiatives represent a major step forward in Saudi Arabia’s clean energy infrastructure and are expected to significantly contribute to the Kingdom’s expanding renewable energy portfolio.

The agreements underscore Saudi Arabia’s commitment to transitioning to a more sustainable energy model. According to the government, the Kingdom aims to build up to 130 gigawatts of renewable energy capacity by 2030.

These new projects are expected to support environmental sustainability while also driving economic growth, attracting foreign investment, and creating job opportunities in the green energy sector. They further reinforce Saudi Arabia’s position as a key player in the global energy transition.