Saudi energy giant ACWA Power has commissioned the 700-megawatt AlRass1 Solar Photovoltaic Project, furthering the Kingdom’s renewable energy goals.
The plant has begun power generation after receiving a commercial operations certificate from its off-taker, the company stated on Tadawul.
Birth of the Project
In 2022, ACWA Power signed a power purchase agreement to develop the project in Al Qassim province, stating that once fully operational, the plant would generate enough energy to power around 132,000 homes in central Saudi Arabia.
The project underscores the Kingdom’s increasing role in the global renewable energy sector as it aims to generate 130 gigawatts of green power by 2030.
Additionally, Saudi Arabia is investing heavily in diversifying its energy mix to reduce carbon emissions and promote sustainable development, targeting renewables to supply at least 50 percent of its electricity by the end of the decade.
ACWA Power, which holds a 40.1 percent stake in AlRass Renewable Energy Co., noted that the plant’s financial impact will be reflected in the second half of this year.
The remaining stakes are to be held by Badeel, a subsidiary of the Public Investment Fund, and China’s State Power Investment Corp., with 20 percent and 39.9 percent, respectively.
About ACWA Power
ACWA Power is among several companies leading the Kingdom’s green transition and expanding globally, targeting high-growth economies.
The firm plans to raise SR7. 13 billion ($1.9 billion) in capital to triple its assets under management by 2030, supporting its growth and financial stability.
Earlier in August, the utility giant reported a net profit of SR926. 8 million for the first half of this year, a 35.5 percent increase compared to the same period last year.
The company attributed the profit gain to increased revenues, a higher profit share from equity-accounted investees, and raised finance income.
Its total revenue saw a marginal year-on-year increase of 2.6 percent in the first six months of 2024, reaching SR 2.81 billion.
ACWA Power is advancing its project portfolio with several key assets now operational, the company stated after its first-half results announcement earlier this month.
furthermore, the 1,500MW Sudair solar PV in Saudi Arabia, the 200MW Kom Ombo solar PV in Egypt, and the 909,000 cubic meters per day Al Taweelah desalination plant in the UAE are all operating at full capacity, it added.
funding Secured for Projects Similar to AlRass1 Solar Photovoltaic Project
Saudi renewables major Acwa Power has secured funding of SAR11.4 billion ($3 billion) for two projects in the kingdom.
The company signed a debt financing agreement worth SAR5.7 billion for the development and construction of a 1,800 megawatt (MW) combined cycle power plant in Madinah.
,Moreover, It also signed a deal to obtain SAR5.7 billion in funding to develop and construct a 1,800 MW combined cycle power plant in Qassim.
The loans, which have a duration of 337 months, were secured from global and local lenders, including Standard Chartered Bank, Bank of China, Riyad Bank, Saudi National Bank, Alinma Bank, The Saudi Investment Bank and Saudi Awwal Bank.
Lastly, Acwa Power also secured a $80 million from the Bank of China as the appeal of the Chinese Renminbi as a trade currency gained traction in the GCC.
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