Saudi Arabia has intensified its efforts to construct the world’s largest solar project as the ACWA Power-led consortium finalized financing for Al-Shuaibah 1 and Al-Shuaibah 2, amounting to a total investment of SR8.3 billion ($2.2 billion), using a combination of long-term debt and equity.
ACWA Power made the announcement in a filing on Sunday, revealing that the total financing includes SR6.1 billion in senior debt, with an SR1.7 billion loan from the National Development Fund on behalf of the National Infrastructure Fund.
Additionally, an SR4.4 billion US-dollar commercial facility from a consortium of local, regional, and international banks, including Bank Saudi Fransi, First Abu Dhabi Bank, and Mizuho Bank, was secured.
In November, ACWA Power signed agreements with Badeel to develop the solar plant with a capacity to power 350,000 homes. The 2,060 megawatts solar photovoltaic plant is expected to commence commercial operations by the fourth quarter of 2025.
The consortium, including Public Investment Fund unit Badeel and the Saudi Arabian Oil Co., with ACWA Power holding a 35 per cent equity stake, aims to contribute to Saudi Arabia’s energy transition strategy, aligned with Vision 2030 objectives.
The Public Investment Fund targets developing 70 per cent of the Kingdom’s renewable energy capacity by 2030. With rising oil prices, investments in clean energy projects are expected to grow as Saudi Arabia aims to add 15 GW of renewable energy capacity in 2022‑23, supporting the government’s climate objectives and economic diversification strategy.