Saudi Arabia Launches $8.3B Renewable Energy Projects To Add 15 GW To Grid

(MENAFN- Trend News Agency) BAKU, Azerbaijan, July 15. Saudi Arabia has taken another major step toward its renewable energy goals, signing power purchase agreements (PPAs) for seven large-scale clean energy projects totaling 15,000 megawatts (MW) in capacity, Trend reports.

The deals were signed between the Saudi Power Procurement Company (SPPC) and a consortium comprising ACWA Power, the Water and Electricity Holding Company (Badeel, a Public Investment Fund subsidiary), and Saudi Aramco Power Company (SAPCO).

The new projects - five solar photovoltaic (PV) plants and two wind farms - represent a combined investment of approximately $8.3 billion (SAR 31 billion). Once completed, they will provide 12,000 MW of solar and 3,000 MW of wind power to the national grid.

The facilities will be located across various regions in Saudi Arabia:

• Solar PV plants: Bisha (Asir), Humaij (Madinah), Khulis (Makkah), Afif1 and Afif2 (Riyadh)

• Wind farms: Starah and Shaqra (both in Riyadh)

Construction is expected to be completed between the second half of 2027 and the first half of 2028, with financial close targeted for the third quarter of 2025.

These projects are part of the Kingdom's National Renewable Energy Programme (NREP), led by the Ministry of Energy and aligned with Vision 2030, which aims to generate 70% of Saudi Arabia's renewable energy capacity through the Public Investment Fund (PIF).

ACWA Power CEO Marco Arcelli called the agreement“a milestone” in advancing the Kingdom's sustainable energy transition, while Badeel's acting CEO Sultan AlNabulsi emphasized the strategic impact on the national economy and private sector. Waleed Al Saif, SVP of New Energies at Aramco, said the initiative supports the company's ambition to expand its renewables portfolio and reduce emissions.

With these additions, ACWA Power's solar and wind portfolio in Saudi Arabia has grown to 21 projects, with over 34 GW of renewable capacity. Its global renewable energy portfolio now totals 51.9 GW.

MENAFN15072025000187011040ID1109801838