Saudi-based Acwa Power has signed an agreement with Badeel, a wholly-owned unit of the kingdom's sovereign wealth fund Public Investment Fund (PIF), to develop a 2,060 MW solar photovoltaic (PV) plant at Al Shuaibah in Makkah province.
The leading developer, investor, and operator of power generation, water desalination and green hydrogen plants said Shuaibah 2 is its sixth solar energy facility in Saudi Arabia.
As per the deal, Badeel and Acwa Power will build, own and operate Al Shuaibah 2 facility and the electricity produced will be sold to Saudi Power Procurement Company (SPPC).
When complete, it will be the largest facility of its kind in the Middle East that will power 350,000 homes, it added.
Deputy Governor and Head of Mena Investments at PIF Yazeed A Al-Humied said this marks a key achievement toward PIF’s commitment to develop 70 per cent of Saudi Arabia’s renewable energy by 2030.
The project will be jointly owned by Badeel and Acwa Power with each holding 50 per cent equity stake through the establishment of a joint venture company – Shuaibah Two Electrical Energy Company – dedicated to the development of the project. The commercial operations are set for Q4 2025.
Acwa Power Chairman Mohammad Abunayyan said: “Solar power is a key component in unlocking positive economic, environmental and social outcomes for the betterment of communities across our great nation. Our KSA portfolio comprises 13 power, water desalination and green hydrogen plants.”
Badeel and Acwa Power are also developing the 1,500 MW Sudair Solar PV project, which was the first cornerstone renewable energy project in PIF’s programme, he added.