Saudi Arabia has signed a series of landmark power purchase agreements (PPAs) for three colossal solar projects, which is marking a significant milestone in its ambitious Vision 2030 initiative. This comprehensive plan is designed to reduce the kingdom's reliance on fossil fuels and transform it into a leader in the global shift towards renewable energy.
Massive Solar Projects Launched
The agreements are expected to boost Saudi Arabia’s renewable energy capacity and catalyze broader economic diversification efforts – central to Vision 2030.The newly announced solar photovoltaic (PV) plants are set to become some of the largest in the region involving consortia led by ACWA Power – the Water and Electricity Holding Company (Badeel) – and Saudi Aramco Power Company (SAPCO).
These projects will be developed in collaboration with the Saudi Power Procurement Company (SPPC) ensuring that the ventures align with the kingdom's strategic energy goals, particularly within the framework of Vision 2030.
The solar PV plants are designed to serve the holy cities of Haden and Muwayh in the Makkah region each with a capacity of 2,000 MW and the Al Khushaybi plant in the Qassim region — which will generate 1,500 MW. These projects represent a substantial increase in Saudi Arabia's renewable energy capacity.
Collectively, they form part of a broader initiative aimed at achieving a total capacity of 13,600 MW. This initiative, funded with over $9 billion from the Public Investment Fund (PIF) and its partners, underscores the kingdom’s commitment to sustainable development and energy independence. These solar projects are expected to inject 5,500 MW of clean energy into the national grid by the first half of 2027 a crucial step toward Saudi Arabia's goal of achieving net-zero emissions by 2060.
The financial closure of these projects is anticipated by the end of 2024 paving the way for their timely execution and integration into the national energy infrastructure. These developments are essential for reducing the kingdom’s carbon footprint and meeting its international climate commitments.
Commitment to Vision 2030
Saudi Arabia’s rapid progress in its energy transition is a testament to the kingdom's commitment to fulfilling the goals of Vision 2030. The plan, which aims to diversify the economy and reduce dependency on oil, has placed a strong emphasis on developing the renewable energy sector.
"We are proud to continue our role as a key partner to Badeel and Aramco" said Raad Al-Saady — vice chairman and managing director of ACWA Power. "With these solar projects, our total global capacity in renewables now reaches 35,000 MW showcasing our leadership in delivering competitive and low-cost renewable energy."
Sultan AlNabulsi – Badeel’s acting CEO– emphasized the alignment of these projects with the broader economic objectives of Vision 2030. "This project reflects PIF’s commitment to Vision 2030, which aims to diversify Saudi Arabia’s economy beyond oil," he stated. "Badeel is dedicated to achieving local content in producing 70 percent of the kingdom’s renewable energy by 2030.
The successful execution of these solar projects is expected to have far-reaching implications. These include enhancing the kingdom's renewable energy portfolio, driving technological innovation, and creating job opportunities within the energy sector. By investing in advanced renewable energy technologies Saudi Arabia is positioning itself as a hub for sustainable energy solutions — attracting both domestic and international investments.
Advanced Technology and Environmental Goals
The new solar PV plants will be powered by cutting-edge technology designed to maximize energy output while minimizing operational disruptions and maintenance downtime. This advanced technology is crucial for meeting Saudi Arabia's growing energy demands as the kingdom seeks to balance its electricity production between renewable energy and natural gas by 2030.
The integration of such technology reflects the kingdom's strategic approach to ensuring energy security while reducing its environmental footprint, thereby aligning with global sustainability goals.
Aramco — a key player in the kingdom's energy landscape — has also committed to expanding its renewable energy investments. The company plans to invest in up to 12,000 MW of solar and wind energy by 2030 aligning with its broader goal of achieving net-zero Scope 1 and Scope 2 greenhouse gas emissions by 2050.
"We are eager to continue our strategic partnership with ACWA Power and Badeel, strengthening our delivery of low-emission energy to meet the kingdom's growing power needs," said Waleed Al Saif – senior vice president of New Energies at Aramco.
With the addition of these new projects — ACWA Power's total solar capacity in Saudi Arabia has reached 17,800 MW — underscoring the kingdom’s vision of becoming a global leader in renewable energy. These developments are significant not only in terms of capacity but also in their potential to drive down the kingdom's carbon footprint, contributing to global efforts to combat climate change.