ACWA Power’s 700 MW AlRass1 Solar Project Goes Live, Pioneering Renewable Energy Expansion in Saudi Arabia’s Energy Hub

Saudi Arabia’s renewable energy landscape has taken a significant step forward with ACWA Power’s commissioning of the 700-megawatt AlRass1 Solar Photovoltaic Project in Al Qassim province. The plant has commenced power generation after receiving a commercial operations certificate from its off-taker, as announced by the company on Tadawul.

In 2022, ACWA Power entered into a power purchase agreement to develop the AlRass project, which is now operational and is expected to generate sufficient electricity to power approximately 132,000 homes in central Saudi Arabia. This development aligns with the Kingdom’s broader objective to produce 130 gigawatts of green power by 2030, as part of its commitment to reducing carbon emissions and promoting sustainable development.

ACWA Power holds a 40.1 percent stake in AlRass Renewable Energy Co., with the remaining shares owned by Badeel, a subsidiary of the Public Investment Fund (20 percent), and China’s State Power Investment Corp. (39.9 percent). The company has indicated that the financial impact of the AlRass plant will be reflected in the second half of 2024.

This milestone comes as ACWA Power continues to expand its global footprint, particularly in high-growth economies, as part of Saudi Arabia’s green transition efforts. The company has announced plans to raise SR7.13 billion ($1.9 billion) in capital to triple its assets under management by 2030, further bolstering its growth and financial stability.

ACWA Power’s first-half results for 2024 revealed a net profit of SR926.8 million, marking a 35.5 percent increase compared to the same period last year. This profit surge is attributed to higher revenues, increased profit shares from equity-accounted investees, and elevated finance income. Total revenue for the first half of 2024 reached SR2.81 billion, reflecting a year-on-year growth of 2.6 percent.

The company also highlighted the successful operation of several key projects, including the 1,500MW Sudair solar PV in Saudi Arabia, the 200MW Kom Ombo solar PV in Egypt, and the 909,000 cubic meters per day Al Taweelah desalination plant in the UAE. These projects are now operating at full capacity, reinforcing ACWA Power’s leadership in the renewable energy sector