Saudi Arabia Makes a Powerful Green Leap as ACWA Power, Badeel & Aramco’s SAPCO Secure $8.2B for 15 GW Renewable Megaprojects

ACWA Power, Badeel & Aramco's SAPCO Secure $8.2B for 15 GW Saudi Renewable Projects

In a landmark move for the global energy transition, a consortium led by ACWA Power, alongside Badeel (a company wholly owned by the Public Investment Fund) and SAPCO (Saudi Aramco Power Company), has achieved financial close for a massive portfolio of 15 gigawatts (GW) of renewable energy projects in Saudi Arabia. With a total investment value of approximately $8.2 billion, this marks one of the world's largest single financings for renewable energy.

The Project Portfolio: 7 Massive Plants

The portfolio consists of seven new utility-scale power plants, strategically located across multiple provinces, to diversify the national grid's renewable mix.

Solar PV Projects (Total: 12 GW):

• Bisha Solar PV Plant: 3 GW (Asir Province)

• Humaij Solar PV Plant: 3 GW (Madinah Province)

• Khulis Solar PV Plant: 2 GW (Makkah Province)

• Afif‑1 Solar PV Plant: 2 GW (Riyadh Province)

• Afif‑2 Solar PV Plant: 2 GW (Riyadh Province)

Wind Power Projects (Total: 3 GW):

• Starah Wind Farm: 2 GW (Riyadh Province)

• Shaqra Wind Farm: 1 GW (Riyadh Province)

Collectively, these facilities will add 15,000 MW of clean energy capacity, significantly offsetting carbon emissions and meeting rising domestic electricity demand.

Strategic Framework & Key Players

This initiative is a cornerstone of Saudi Arabia's National Renewable Energy Program (NREP), overseen by the Ministry of Energy. The structure is designed for efficiency and bankability:

• Ownership: The projects are jointly owned by the consortium of ACWA Power, Badeel, and SAPCO.

• Off-taker: The Saudi Power Procurement Company (SPPC) will be the sole buyer of all power generated, providing stable, long-term revenue certainty—a critical factor in securing the $8.2 billion financing.

• Timeline: The projects are scheduled to become operational between late 2027 and mid-2028.

Why This Deal is a Game-Changer

1. For Saudi Arabia's Energy Transition:
This deal is a monumental leap toward the Kingdom's Vision 2030 goals of diversifying its economy and energy mix. Adding 15 GW of renewables directly supports targets to generate 50% of electricity from clean sources by 2030. It enhances energy security, reduces reliance on liquid fuels for power generation, and positions Saudi Arabia as a future green hydrogen hub by providing vast amounts of clean electricity.

2. For the Regional Renewable Market:
The scale of investment sends an unequivocal signal to global investors and developers about the commercial viability and ambition of Saudi Arabia's green agenda. It demonstrates the ability to structure and finance gigawatt-scale projects at a competitive cost, setting a benchmark for the entire MENA region.

3. For ACWA Power and its Partners:
This financial close cements ACWA Power's role as the premier developer and operator of Saudi Arabia's renewable energy pipeline. For Aramco, via SAPCO, it represents a strategic diversification into large-scale renewable power generation, aligning with its ambition to become a leader in the energy transition. For Badeel and the Public Investment Fund (PIF), it underscores their mandate to catalyze strategic sectors that drive economic transformation.

Broader Impacts: Economy, Jobs, and Technology

Beyond megawatts, the project portfolio is expected to:

• Create thousands of direct and indirect jobs during construction and operation.

• Stimulate local manufacturing and supply chains for solar panels, wind turbines, and related components.

• Facilitate significant technology and knowledge transfer, building domestic expertise in renewable energy engineering and project management.

Context: ACWA Power's Momentum in 2025

This achievement builds on a strong year for ACWA Power, which recently reported a 17% year-on-year increase in Q3 2025 operating income, driven by new project commissions and robust performance. The 15 GW financial close exemplifies the company's strategy to rapidly scale its green asset base and solidify its leadership in the global utilities sector.

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Conclusion: A Defining Moment for Clean Energy

The financial close of this 15 GW portfolio is more than a corporate milestone; it is a defining moment for Saudi Arabia's energy future. By mobilizing unprecedented capital from its sovereign wealth engine and national oil company into wind and solar, the Kingdom is making a tangible, irreversible commitment to a sustainable economy.

This project proves that the transition to renewable energy is not just an environmental imperative but a sound, large-scale economic investment. As construction begins, the world will be watching this blueprint for how resource-rich nations can successfully pivot to become clean energy powerhouses.