Acwa Power seals $450mln Saudi solar PV project deal

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Acwa Power, a leading developer of power generation projects, has signed a power purchase agreement with Saudi Power Procurement Company (SPPC) for the 700 MW Ar Rass solar photovoltaic independent power plant (IPP) in the kingdom's Al Qassim province.

The Ar Rass IPP is expected to reach its financial close in Q4 this year, said a statement from Acwa Power.

Valued at SR1.7 billion ($450 million), Ar Rass is the largest PV project that has been tendered as part of Saudi Arabia’s National Renewable Energy Programme (NREP) to date, for which Acwa Power has been earmarked to deliver 70% of the total 58.7 GW target.

The agreement was signed in the presence of HRH Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, Minister of Energy of Saudi Arabia.

As per the agreement, Acwa Power will sell energy produced by the project to SPPC for a period of 25 years.

Acwa Power will hold a (40.1%) stake in the facility, along with (20%) by the Water and Electricity Holding Company (Badeel), a wholly-owned PIF Portfolio Company, and (39.9%) will be owned by the State Power Investment Corporation from China.

When fully functional, the project will be able to produce energy to power around 132,000 homes in central Saudi Arabia.