Inspenet, August 26, 2023.
Several Saudi companies, including the oil giant Aramco and a company backed by the Kingdom’s sovereign wealth fund, have announced the closing of financing for two crucial solar energy projects in Saudi Arabia, with a total investment of $2.37 billion .
Photovoltaic solar energy projects Al Shuaibah 1 Y Al Shuaibah 2 They are being driven by the Saudi Aramco Power Company (SAPCO), owned by the oil company Aramco, along with Saudi companies ACWA Power and the Water and Electricity Holding Company (Badeel), which is owned by the Public Investment Fund (PIF). These projects are expected to generate a combined capacity of more than 2.6 GW of clean electricity .
The Al Shuaibah PV 1 and Al Shuaibah PV 2 facilities will have generating capacities of 600 MW and 2,031 MW respectively and are expected to be capable of supplying electricity to approximately 450,000 homes in Saudi Arabia.
With a projected total investment of $2.37 billion, the plant is expected to come into commercial operation in 2025.
Likewise, Saudi Power Procurement Company will be in charge of managing the acquisition of the projects, which will be jointly owned by Badeel (34.99%), Acwa Power (35.01%) and Sapco (30%).
Saudi Arabia and its commitment to renewable energy
Saudi Arabia, the largest economy in the Arab world, is in the development phase of several new renewable energy projects, with the goal of increasing its clean energy generation capacity and achieving carbon neutrality by 2060.
“Obtaining funding for this groundbreaking project marks a significant milestone in meeting Saudi Arabia’s clean energy goals, in line with the National Renewable Energy Program, which aims to get 50% of electricity from renewable sources. by 2030,” said Marco Arcelli, the CEO of ACWA Power.
For his part, Mohammed Al Qahtani, president of downstream at Aramco, commented, “Our participation in the Al Shuaibah PV 1 and Al Shuaibah PV 2 projects aligns with our efforts to reduce Aramco’s carbon footprint and create a more sustainable future. .”
Saudi Arabia plans to allocate around $270 billion for low-carbon energy projects through 2030 , Energy Minister Prince Abdulaziz bin Salman announced earlier this year. In addition, he pointed out that the country also plans investments to modernize its energy infrastructure.
In the field of solar and wind energy, Saudi Arabia has one of the most ambitious capacity expansion targets in the world. By 2030, the country aims to achieve a combined capacity of approximately 58 GW in wind and solar power, compared to a current capacity of less than 1 GW.