The Sakkara solar farm in Saudi Arabia, built by ACWA Power. Image: ACWA Power.
Saudi Arabia’s Public Investment Fund (PIF) has raised its shareholding in renewable energy developer ACWA Power.
The sovereign wealth fund has taken its stake from 33.36% to 50% to ensure the Riyadh-based power company plays “an integral role” in developing the state-owned wealth fund’s renewable energy interests, it said.
In a statement, the PIF said the increased stake would help to drive and diversify economic growth in Saudi Arabia.
The deal also comes several months after China’s Silk Road Fund completed the acquisition of a minority 49% stake in ACWA’s renewables arm, ACWA Power RenewCo.
ACWA currently has 58 power facilities in operation or under construction, with operational capacity of around 37.7GW of power. Around three quarters (74%) of ACWA’s assets under construction are dedicated to low carbon technology.
The two entities have worked together since 2013, when a subsidiary of PIF, Sanabil Direct Investments Company, bought a minority stake in ACWA. PIF made a direct investment in the group five years later.
Mohammad Abunayyan, chairman of ACWA, called the investment a “vote of confidence” in the group’s ability to expand its operations “without compromising environmental stewardship.”
“It is with much pleasure that we announce the closure of this key transaction for the mutual benefit of the Company, its shareholders and the Kingdom as a whole,” he said.
Jun 15 - Jun 16, 2021
Looking at the drivers and dynamics of utility scale solar in the UK & Ireland over the next five years. This event will consider the immediate challenges as we enter the build phase in both these markets where we could see as much as 4GW deployed in 2021 alone! What developments will continue the growth of 100MW+ sites and what impact will government policy have on the rate of deployment in both markets?Join leading developers and manufacturers shaping the direction of one of Europe’s most active markets and hear from speakers with a history of influencing innovation and change.
Feb 03 - Feb 04, 2021
The business of solar is changing, as the industry scales up, technology, IT and new players to the market will add complexity. This sparks a host of opportunities such as co-location of solar and storage and the rise of unsubsidised solar projects as well as challenges which will question the very business model of European solar asset owners. Solar Finance & Investment Europe is the meeting place for institutional investors, sovereign wealth funds, solar, wind and storage funds and large energy buyers to do business.