Saudi Arabia Signs $8.3 Billion Deal for 15 GW Solar and Wind Projects with ACWA Power

In a landmark stride towards renewable energy, Saudi Arabia has signed Power Purchase Agreements (PPAs) for seven new solar and wind projects with a combined capacity of 15,000 megawatts (MW) and investments exceeding SAR 31 billion (approx. USD 8.3 billion). The agreements were formalized in the presence of His Royal Highness Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy and Chairman of the Board of Directors of the Saudi Power Procurement Company (Principal Buyer).

The Principal Buyer signed the agreements with a consortium led by ACWA Power as the main developer, alongside Badeel—a wholly owned subsidiary of the Public Investment Fund (PIF)—and Aramco Power, a subsidiary of Saudi Aramco. These projects fall under the National Renewable Energy Program (NREP), supervised by the Ministry of Energy.

Project Breakdown:

Solar PV Projects:

• Bisha Solar PV (Asir Province): 3,000 MW | LCOE: 1.28989 cent/kWh (4.83708 Halala/kWh)
• Humaij Solar PV (Medina Province): 3,000 MW | LCOE: 1.30848 cent/kWh (4.90682 Halala/kWh)
• Khulis Solar PV (Makkah Province): 2,000 MW | LCOE: 1.36117 cent/kWh (5.10439 Halala/kWh)
• Afif 1 Solar PV (Riyadh Province): 2,000 MW | LCOE: 1.26596 cent/kWh (4.74736 Halala/kWh)
• Afif 2 Solar PV (Riyadh Province): 2,000 MW | LCOE: 1.25959 cent/kWh (4.72346 Halala/kWh)

Wind Projects:

• Starah Wind (Riyadh Province): 2,000 MW | LCOE: 2.05712 cent/kWh (7.71422 Halala/kWh)
• Shaqra Wind (Riyadh Province): 1,000 MW | LCOE: 1.86600 cent/kWh (6.99750 Halala/kWh)

The simultaneous signing of these major PPAs marks one of the largest renewable energy project rounds globally, reinforcing the Kingdom’s position as a key player in sustainable energy development. The projects highlight Saudi Arabia’s ability to consistently achieve world-leading Levelized Costs of Energy (LCOE), thanks to its competitive financing models and investor confidence.

The Saudi Power Procurement Company, serving as the Kingdom’s principal energy offtaker, is tasked with the predevelopment, tendering, and energy procurement from generation projects. So far, under the NREP, 43,213 MW of renewable capacity has been tendered. Of this, 38,713 MW has PPAs signed, with 10,213 MW already connected to the grid. Grid-connected capacity is forecasted to rise to 12,713 MW by end of 2025 and 20,013 MW by end of 2026.

This significant development aligns with Saudi Arabia’s Vision 2030 targets and underscores the Kingdom’s accelerating transition to a cleaner and more diversified energy mix.