Seven utility-scale solar and wind projects will add 15 GW to Saudi Arabia’s grid, with financial close targeted for Q3 2025 and operations starting between late 2027 and early 2028.
Backed by ACWA Power, Aramco’s SAPCO, and PIF-owned Badeel, the initiative reflects Saudi Arabia’s goal to achieve 70% of its renewable energy target through PIF by 2030.
The $8.3 billion investment expands ACWA Power’s renewable portfolio in the Kingdom to 34 GW and supports Aramco’s net-zero ambitions and energy diversification.
In the presence of His Royal Highness Prince AbdulAziz bin Salman bin AbdulAziz Al Saud, Minister of Energy, ACWA Power, the Water and Electricity Holding Company (Badeel), and Saudi Aramco Power Company (SAPCO) signed power purchase agreements (PPAs) for seven new renewable energy projects with the Saudi Power Procurement Company (SPPC).
Valued at approximately $8.3 billion (SAR 31 billion), the projects will deliver a combined 15,000 megawatts of clean energy capacity: 12,000 MW from solar PV and 3,000 MW from wind. These projects are part of Saudi Arabia’s National Renewable Energy Program (NREP), led by the Ministry of Energy and aligned with Vision 2030.
The seven projects include:
Bisha – 3,000 MW solar PV (Asir)
Humaij – 3,000 MW solar PV (Madinah)
Khulis – 2,000 MW solar PV (Makkah)
Afif 1 & 2 – 2,000 MW each solar PV (Riyadh)
Starah – 2,000 MW wind (Riyadh)
Shaqra – 1,000 MW wind (Riyadh)
All projects will be jointly owned by Badeel, ACWA Power, and SAPCO, and are expected to reach financial close by Q3 2025, with operations beginning between H2 2027 and H1 2028.
“This landmark agreement represents a significant milestone in Saudi Arabia’s strategic vision for a more resilient and more sustainable energy landscape,” said Marco Arcelli, CEO of ACWA Power. “It reflects our dedication to collaborate with SPPC, PIF and Aramco as we collectively advance this step shift towards a more sustainable energy future.”
The agreement supports PIF’s commitment to deliver 70% of Saudi Arabia’s renewable capacity by 2030. It also demonstrates the sovereign fund’s aim to catalyze the energy transition through partnerships that expand local supply chains and drive economic diversification.
Sultan AlNabulsi, Acting CEO at Badeel, emphasized: “This investment will enhance the resilience of the energy sector nationally, positively impacting all other vital sectors of the national economy, and increasing the country’s investment attractiveness.”
SAPCO’s involvement further anchors Aramco’s strategic push into renewables as it expands its “New Energies” portfolio.
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“We are helping build Saudi Arabia’s renewable energy infrastructure,” said Waleed Al Saif, SVP of New Energies at Aramco. “Through such investments, we aim to unlock additional value from Saudi Arabia’s abundant natural resources and grow Aramco’s New Energies portfolio.”
With the new plants, ACWA Power’s domestic solar and wind portfolio rises to 21 projects totaling over 34 GW, while its global renewable energy portfolio now surpasses 51.9 GW.
The development adds to the partners’ broader joint renewables pipeline of 28.6 GW, involving $17 billion (SAR 63.75 billion) in investments, including projects such as Sudair, Shuaibah 2, Ar Rass 2, and Al Kahfah.
Saudi Arabia’s long-term goal is to install 130 GW of renewable energy capacity by 2030, positioning itself as a regional leader in the clean energy transition.
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