Acwa Power reaches financial close for three PV solar plants: Renewables giant Acwa Power, PIF’s Water and Electricity Holding Company (Badeel), and Aramco subsidiary Aramco Power, signed financing agreements worth SAR 9.7 bn (USD 2.6 bn) to develop three large-scale solar PV projects in the Kingdom, according to a disclosure to Tadawul. The funding package will support the development, design, construction, and operation of the projects, with the financing carrying a tenor of 27.3 years.

The SAR 9.7 bn funding package is provided by a syndicate of international and local banks that include Banque Saudi Fransi, Emirates NBD, First Abu Dhabi Bank, HSBC, Mizuho Bank, Riyad Bank, Saudi National Bank, and Standard Chartered Bank, the disclosure said.

About the plants: Two of the solar PV projects — Haden and Al Muwaih — will be set up in Makkah with a capacity of 2 GW each. The third, Al Khushaybi in Qassim, will have a capacity of 1.5 GW. The three plants were tendered at the start of the year with the Energy Ministry planning to tender more projects between now and the year’s close as it looks to meet a 20 GW annual target of tendered capacities for renewables. The ministry hopes to reach 100 to 130 GW of output from renewables power by the end of the decade.

The projects will be developed by a group of JV companies including Buraiq Renewable Energy, Moya Renewable Energy, and Nabah Renewable Energy.

Who owns what? Acwa Power holds a 35.1% stake in each of the project companies building out the plants. Meanwhile, PIF-owned water and electricity player Badeel holds a 34.9% stake in each of the companies involved, with Saudi Aramco Power holding the rest.

The offtaker: Saudi Power Procurement Company signed power purchase agreements for 5.5 GW of green electricity generated by the three plants in June of this year.

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