Saudi sovereign wealth fund takes stake in ACWA Power

Paddy Padmanathan, CEO, ACWA Power.

A Saudi Arabian sovereign wealth fund has taken a 15.2% stake in ACWA Power, a dominant solar power developer in the Middle East.

Saudi-based ACWA has historically been a developer of conventional power and water projects. This year it made headlines with a winning bid of 2.3417 US cents per kWh for the 300MW Sakaka PV project in its domestic market.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • 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

The Public Investment Fund of Saudi Arabia has taken a direct stake of 15.2% and already had an indirect interest of 9.78% via its Sanabil subsidiary. Rumours of an IPO at ACWA have circulated for a long time.

The country’s long-term strategy includes vast economic diversification and a reduction in its own oil consumption.

“The investment by PIF reflects its commitment to the Kingdom of Saudi Arabia’s energy transition plans of diversification of the fuel mix in power generation including the introduction of significant renewable energy capacity and the expansion of much needed additional power generation and desalinated water production capacity,” said Paddy Padmanathan, CEO, ACWA Power.

“While ACWA Power will continue to focus on reliably delivering electricity and desalinated water at the lowest cost, [it] also intends to leverage its domestic and international market-leading position to play a pivotal role in the Kingdom of Saudi Arabia’s energy transition plan, as evidenced by its recent successful bid for the Kingdom of Saudi Arabia’s first utility-scale solar photovoltaics tender in the Kingdom of Saudi Arabia in February 2018,” added Padmanathan.

According to ACWA Power, the investment takes the form of a “capital increase” with the proceeds ploughed back into ACWA’s investment plans.

Read Next

Subscribe to Newsletter

Upcoming Events

Solar Media Events
March 12, 2024
Frankfurt, Germany
Upcoming Webinars
March 13, 2024
9am EDT / 1pm GMT / 2pm CET
Solar Media Events
March 19, 2024
Texas, USA