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.

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.

29 November 2022
PV ModuleTech EMEA in Madrid on 29-30 November 2022 will address the factors underpinning the changing PV module landscape, gathering together all the key stakeholders across the value-chain from module production to field testing. Join us for presentations from the leading players in the sector, clearly identifying the opportunities and challenges set to impact module supply to Europe and the Middle-East over the next few years.

Read Next

August 12, 2022
ACWA Power posted strong H1 2022 results as it continues to divert its portfolio to renewables and low-carbon technologies.
June 29, 2022
Arab-speaking countries in the MENA region have planned to increase utility-scale solar capacity by 49.5 GW by 2030, according to Global Energy Monitor.
PV Tech Premium
June 14, 2022
With PV cleaning robots posing significant advantages for solar O&M, Ben Figgis of the Qatar Environment & Energy Research Institute of Hamad bin Khalifa University, explores recent developments of standards in the field.
May 30, 2022
Israel is planning to scale up solar deployment as part of a new government strategy designed to put the country on track to have 30% of its electricity generation from renewables by 2030.
March 28, 2022
Nextracker has been selected to supply its smart solar trackers and TrueCapture technology for the first phase of a 450MW PV project in Sudair, Saudi Arabia, which Nextracker said was the country’s largest solar plant currently under construction.
March 9, 2022
Solar developers ACWA Power and Jinko Power have both penned power purchase agreements in Saudi Arabia, with the country aiming to launch 15GW of projects in the next two years.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 27, 2022
15:30 AEST (UTC +10)
Solar Media Events
October 4, 2022
New York, USA
On-Demand Webinars, Solar Media Events
October 11, 2022
Virtual event
Upcoming Webinars
October 18, 2022
10am (EDT) / 4pm (CEST)