Acwa Power, a leading Saudi-based utility project developer, has announced that its consortium has secured financial closure for the Al Shuaibah solar projects which is being developed in Jeddah at a total investment of $2.37 billion.

The consortium comprises Electricity Holding Company (Badeel) – a wholly owned unit of Saudi sovereign wealth fund PIF (Public Investment Fund) – and Saudi Aramco Power Company (Sapco), with Acwa Power holding a 35 per cent equity stake.

 With a 2,600 MW capacity of clean energy, Al Shuaibah (comprising Al Shuaibah 1 and 2 projects) is set to become the world’s largest solar project once it gets operational in 2025, said the Saudi utility developer.

According to Acwa Power, the senior debt financing for this plant, amounting to $1.63 billion, comprises a $450-million Saudi riyal-denominated loan from the National Development Fund on behalf of the National Infrastructure Fund (under establishment).

Additionally, the financing includes a $1.18 billion US-dollar-denominated commercial facility provided by a consortium of local, regional, and international banks including Bank Saudi Fransi, First Abu Dhabi Bank, Mizuho Bank, Riyad Bank, Saudi National Bank, Standard Chartered Bank and Saudi Investment Bank.

Saudi Power Procurement Company is the procurer and off-taker for the projects.

Acwa Power said once completed in 2025, the Al Shuaibah PV projects are expected to provide power to approximately 450,000 households.