RIYADH — The Water and Electricity Holding Company (Badeel), a wholly-owned subsidiary of the Public Investment Fund (PIF), and leading Saudi developer ACWA Power on Wednesday signed power purchase agreements to develop a 2,060 MW solar photovoltaic (PV) plant in Al Shuaibah in the Makkah region.
The largest facility of its kind in the Middle East to date, the project is expected to start commercial operation by Q4 2025.
The project will be jointly owned by Badeel and ACWA Power, a leading investor and operator of power generation, water desalination and green hydrogen plants worldwide.
Each company will hold a 50% equity stake through the establishment of “Shuaibah Two Electrical Energy Company”, a joint stock company dedicated to the development of the project.
In the same vein, the Shuaibah Two Electric Energy Company announced the signing of the power purchase agreement for the project with the Saudi Power Procurement Company (SPPC), the off-taker within the project.
The solar power plant is a concrete representation of the energy transition in play — a giga-scale development in sustainable energy that will play a key role in translating Saudi Vision 2030 goals.
Deputy Governor and Head of MENA Investments at PIF Yazeed A. Al-Humied said, “This marks a key achievement for PIF’s commitment to develop 70% of Saudi Arabia’s renewable energy by 2030. Utilities and Renewables is one of PIF’s priority sectors as part of its domestic strategy, which focuses on unlocking the capabilities of promising sectors to enhance Saudi Arabia’s efforts in diversifying revenue sources”.
“Under the guidance of our visionary leadership and the Ministry of Energy, Saudi Arabia continues to accelerate its ambitious plans for diversifying its energy mix to include renewable energy. It is a great honor to partner with Badeel and SPPC in developing this milestone project which will set a benchmark for sustainable energy development in the region,” said Chairman of ACWA Power Mohammad Abunayyan.
“Solar power is a key component in unlocking positive economic, environmental and social outcomes for the betterment of communities across our great nation. We remain committed to developing local capabilities in technology, supply chain, and talent and ensure they are realized to their fullest potential,” he added.
Badeel and ACWA Power will build, own, and operate the Al Shuaibah 2 facility and the electricity produced will be sold to SPPC. When complete, it will power 350,000 homes.
Shuaibah 2 is ACWA Power’s sixth solar energy facility in Saudi Arabia. In addition, ACWA Power’s KSA portfolio comprises 13 power, water desalination and green hydrogen plants.
Badeel and ACWA Power are also developing the Sudair Solar PV 1500 MW project, which was the first cornerstone renewable energy project in PIF’s program. SPA