(New paragaphs - 5,6,7 and 8 - inserted to reflect information in a related press statement released by ACWA Power)  

Saudi Arabia’s ACWA Power has signed three power purchase agreements (PPAs) worth 12.187 billion Saudi riyals ($3.25 billion) for three large-scale photovoltaic (PV) solar plants.

The projects are Ar Rass 2, Saad 2 and Alkahfah in the central and northern regions of the Kingdom with a production capacity of 2,000 megawatts (MW), 1,125 MW and 1,425 MW, respectively, the water and power developer said in a statement to the Saudi stock exchange on Sunday.

The 35-year duration PPAs were signed between Saudi Power Procurement Company (SPPC) and individual project companies - Nawwar Renewable Energy Company, Saad Two Renewable Energy Company and Ishaa Renewable Energy Company - owned by ACWA Power and Badeel, a wholly owned subsidiary of Public Investment Fund.

Badeel holds a 49.9 percent equity stake in each of the three project companies, the statement said.

In a related press statement, ACWA Power said financial close for these projects is expected by the third quarter of 2023.

The company said its portfolio of solar projects in the Kingdom stands at 11, with over 12 gigawatts (GW) of combined PV capacity, following the addition of the three new projects, while its total renewable capacity portfolio has increased to 23.4GW. 

The three solar projects are part of the National Renewable Energy Programme (NREP) which is led and supervised by the Ministry of Energy, with PIF mandated to develop 70 percent of NREP’s target capacity.

PIF is currently developing a total of five projects - Sudair, Shuaibah 2, Ar Rass 2, Al Kahfah, Saad 2 - with a cumulative capacity of 8 gigawatts (GW) and over $6 billion of investment from the sovereign fund and its partners.

Last week, ACWA Power had signed two agreements in Uzbekistan for green hydrogen and wind power projects. The company signed a $100 million partnership agreement with Uzkimyosanoat to decarbonise Uzbekistan's chemical sector through green hydrogen projects. It also signed a $120 million financing agreement for the 100MW Karatau Wind Project.

(Writing by D Madhura; Editing by Anoop Menon)