ACWA Power-led Saudi consortium wins 1.5GW solar farm PPA

A consortium backed by Saudi Arabia’s sovereign wealth Public Investment Fund (PIF) has signed a 25-year power purchase agreement (PPA) for electricity generated from an up to 1.5GW solar farm.

The US$905.1 million Sudair project, located in Sudair Industrial City, will be capable of powering 185,000 homes and offsetting nearly 2.9 million tonnes of carbon dioxide emissions per year. It will deliver electricity at a price of $12.39 per MW-hour.

The consortium is led by ACWA Power, a Saudi renewable energy developer in which PIF holds a 50% stake. ACWA has partnered with Badeel, a 100%-owned PIF portfolio company.

Mohammad Abunayyan, ACWA Power chairman, said: “With the world having reached a critical juncture in developing solutions to urgently address climate change, Saudi Arabia is proud of its leading role in driving the energy transition effort.

“As the first project under the PIF renewables programme, the Sudair solar PV plant holds special significance, marking the advancement of the journey towards a sustainable economy.”

Earlier this week, ACWA also announced the official inauguration of the 300MW Sakaka solar plant – the Kingdom’s first utility scale renewable energy project.