ACWA Power secures financing for 300MW Saudi Arabia solar project

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
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.

Read Next

April 26, 2021
Solar developer ACWA Power has secured a total US$114 million from financial institutions to fund the construction of what it claims will be Egypt’s largest private solar plant.
April 12, 2021
A consortium between Abu Dhabi-based Masdar, EDF Renewables and Nesma Holding Company has broken ground on a 300MW PV project in Saudi Arabia.
April 7, 2021
Saudi Arabian developer ACWA Power has finalised agreements for the 200MW Kom Ombo solar plant in Egypt, with construction work set to begin later this year.
March 30, 2021
French energy major Total has signed an agreement with Iraq’s Ministry of Oil to develop a host of energy projects in the country, including 1GW of solar PV.
March 19, 2021
A renewables procurement round launched today (19 March) by the government of South Africa will aim to source 2.6GW of clean energy capacity, of which 1GW will be solar PV and 1.6GW wind.
March 4, 2021
A round-up of the latest solar project news from around the world, including updates from Hanwha Q CELLS and Capital Dynamics.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
August 19, 2021
At 9am (PT) | 6pm (CEST)
Solar Media Events
August 25, 2021
Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK