ACWA Power, the Water and Electricity Holding Company (Badeel), and Saudi Aramco Power Company (SAPCO) have signed agreements to invest over $8 billion in the development of 15 gigawatts (GW) of renewable energy capacity across Saudi Arabia, the companies said on Sunday.
The investment will fund seven new projects comprising five solar photovoltaic (PV) plants and two large-scale wind farms. The projects are part of the country’s National Renewable Energy Programme (NREP), led by the Ministry of Energy, and aim to support Saudi Arabia’s strategy to diversify its energy mix and reduce carbon emissions.
The partners have signed power purchase agreements with the Saudi Power Procurement Company (SPPC), which will act as the procurer and off-taker for the energy produced. The total investment is valued at approximately $8.3 billion (more than 31 billion Saudi riyals), the companies said.
The portfolio includes 12 GW of solar capacity and 3 GW of wind capacity. The solar projects will be located in Bisha (3 GW), Humaij (3 GW), Khulis (2 GW), Afif1 (2 GW), and Afif2 (2 GW). The wind projects will be built in Starah (2 GW) and Shaqra (1 GW), all situated across multiple regions including Asir, Madinah, Makkah, and Riyadh provinces.
“This landmark agreement represents a significant milestone in Saudi Arabia’s strategic vision for a more resilient and more sustainable energy landscape,” said Marco Arcelli, chief executive of ACWA Power. “As the largest and most comprehensive agreement to date under the National Renewable Energy Programme, it reflects our dedication to collaborate… as we collectively advance this step shift towards a more sustainable energy future.”
Badeel, a wholly owned company of the Public Investment Fund (PIF), is co-investing in the projects alongside SAPCO, a wholly owned subsidiary of Aramco. Financial close is targeted for the third quarter of 2025, with commercial operations expected to begin between the second half of 2027 and the first half of 2028.
Sultan AlNabulsi, acting CEO of Badeel, said the initiative “is a continuation of Badeel’s efforts… contributing to unlocking the potential of this strategic sector across the entire supply chain.”
Aramco’s Waleed Al Saif, senior vice president of new energies, added,We are helping build Saudi Arabia’s renewable energy infrastructure. In doing so, we are laying the foundations for a more sustainable power network.
The announcement is in line with Saudi Arabia’s Vision 2030 goals, which include increasing the share of renewables in the national energy mix and enhancing the private sector’s role in the energy transition.
