ACWA Power has achieved a significant milestone in its Sudair solar photovoltaic (PV) project in Saudi Arabia. The company announced that it has received the initial commercial operation certificate for Group 1 of the Sudair project from the Saudi Power Procurement Company (SPPC), the principal procurer and off-taker of the project.
Group 1 represents half of the total 1,500-megawatt (MW) capacity of the Sudair solar PV project. This achievement marks a major step forward for the development of this large-scale renewable energy initiative.
The Sudair solar PV project was initiated in June 2021, when the Public Investment Fund launched the project in Sudair Industrial City. In August of the same year, ACWA Power announced the financial close of the project, demonstrating its commitment to the endeavor.
A consortium consisting of ACWA Power, which is 50% owned by the Public Investment Fund (PIF), and Badeel is jointly investing SAR 3.4 billion (approximately $907 million) in the development of the Sudair solar project.
Situated in Sudair Industrial City, approximately 120 kilometers north of Riyadh, the solar plant is a significant addition to Saudi Arabia’s renewable energy infrastructure. ACWA Power and Water and Electricity Holding Company (Badeel) each hold a 35% stake in the project, with the remaining 30% owned by the Saudi Aramco Power Company (SAPCO).
Under a 25-year power purchase agreement (PPA) with the Saudi Power Procurement Company, electricity generated at Sudair will be supplied at a price of USD 0.012 per kWh.
The total investment in the Sudair solar PV project amounts to USD 924 million (EUR 876.7 million), according to information provided on ACWA Power’s website. This substantial investment underscores the commitment to expanding Saudi Arabia’s renewable energy capacity and advancing its sustainability goals.