Saudi Arabian utility developer ACWA Power said on Tuesday it signed a power purchase agreement (PPA) with Saudi Power Procurement Company for its 700 MW Ar Rass solar photovoltaic independent power plant (IPP).

Under the terms of the agreement, ACWA Power will sell energy produced by the project to SPPC for a period of 25 years, the company said in a bourse filing on Tadawul.

The project, which is valued at 1.7 billion riyals ($453 million), was awarded to a consortium led by ACWA Power. Other members of the consortium are China's SPIC (Huanghe Hydropower Development Co. Ltd.) and Water and Electricity Holding Company (Badeel), which is fully owned by the Saudi sovereign wealth fund, Public Investment Fund.

ACWA Power will hold a 40.1 percent stake in the facility, with Badeel holding 20 percent and SPIC 39.9 percent.

The project award came as a part of round three of the National Renewable Energy Program (NREP) by the Saudi Ministry of Energy. ACWA submitted the lowest bid of 5.62 halala/KWh.

(Reporting by Brinda Darasha; editing by Seban Scaria)