ACWA Power secures financing for 300MW Saudi Arabia solar project

Facebook
Twitter
LinkedIn
Reddit
Email
Back in January, PV Tech blogged about how bifacial technology was the likely reason the world’s lowest ever solar bid was rejected. Credit: ACWA Power / Twitter

A consortium of Saudi-based developer ACWA Power and contractor AlGihaz have closed financing of the SAR1.2 billion (US$319 million) Sakaka solar project standing at 300MW in Al Jouf, Saudi Arabia, a project that attracted headlines across the world last year after the government chose ACWA Power despite Masdar putting in the lowest ever solar bid.

The transaction for the project, which has a tariff of just 8.781 halalas/kWh (US¢2.3417/kWh), is financed through limited recourse ring fenced project financing with the entire debt fully underwritten by Natixis. In addition, Arab National Bank provided an equity bridge loan for the transaction.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

Not ready to commit yet?
  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

A new company 'Sakaka Solar Energy Company (SSEC)' has been formed with ACWA Power holding 70% and AlGihaz 30% through its subsidiary AlGihaz Renewable Energy Company to own the Sakaka PV Plant. A 25-year power purchase agreement (PPA) has been signed with Saudi Power Procurement Company (SPPC) acting as offtaker. 

The commercial operation date of the plant is scheduled to be towards the end of 2019, with Indian firm Mahindra Susten and China's Chint performing EPC services. The O&M agreement was signed with Diaa Sakaka Operation and Maintenance Company, an affiliate of First National Operations & Maintenance (NOMAC).

The project comes under the landmark National Renewable Energy Program by the Renewable Energy Project Development Office (REPDO).

Paddy Padmanathan, president and CEO of ACWA Power, said: “We are excited to commence construction of this first utility-scale PV plant in the Kingdom project which will allow us to utilize the considerable expertise and relationships with technology providers and the supply chain we have acquired through the development of 3,000MW of renewable energy projects in five other countries over the last seven years to now deliver at our home not only the lowest tariff for PV power but also to start establishing a renewable energy industry in the Kingdom which we believe will become one of the most significant cornerstone to deliver several of the objectives of Vision 2030 of the Kingdom.” 

The Saudi National Renewable Energy Program aims to accelerate the shift towards utilizing renewable energy resources and ensuring energy security at the lowest cost.

Back in January, PV Tech blogged about how bifacial technology was the likely reason the world’s lowest ever solar bid was rejected.

Read Next

August 28, 2025
Bahraini, Chinese, Egyptian and Emirati groups have agreed to develop a new solar and storage manufacturing facility in Egypt
August 22, 2025
Saudi developer ACWA Power has started commercial operations of a 2.7GW solar PV portfolio in its home country.
August 20, 2025
The consortium building the Al Sadawi PV power plant in Saudi Arabia has reached financial close on the 2GW project.
August 18, 2025
Investment fund Stonepeak has launched a new Middle Eastern renewables platform headed up by a former executive at Jinko Power.
Premium
July 31, 2025
PV Tech Premium spoke with Qiaogiang Gan at KAUST on how the cooling technology helps improve solar cell application in harsher environments.
July 28, 2025
French energy major TotalEnergies has begun the construction of its 1GW solar farm in the Basra region of southern Iraq. 

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines