RIYADH — Saudi Arabia's Public Investment Fund (PIF) announced on Wednesday the launch of the largest solar power plant in the Middle East and North Africa at Al-Shuaibah in Makkah region as part of its renewable energy programme.
The facility will be the largest of its kind in the Middle East to date. The project, with an investment value of $1.75 billion, is expected to start commercial operation by the fourth quarter of 2025.
The Water and Electricity Holding Company (Badeel), a wholly owned company by the Public Investment Fund (PIF), and ACWA Power, a leading Saudi developer, investor, and operator of power generation, water desalination and green hydrogen plants worldwide, today signed power purchase agreements to develop a 2,060 MW solar photovoltaic (PV) plant in Al Shuaibah, Makkah province (the project).
The project will be jointly owned by Badeel and ACWA Power. Each company will hold a 50% equity stake through the establishment of “Shuaibah Two Electrical Energy Company", a joint company dedicated to the development of the project.
Shuaibah Two Electrical Energy Company announced the signing of the power purchase agreement for the project with the Saudi Power Procurement Company (SPPC), the offtaker within this project that is a concrete representation of the energy transition in play—a giga scale development in sustainable energy that will play a key role in translating Saudi Vision 2030 goals.
Deputy Governor and Head of MENA Investments at PIF Yazeed A. Al-Humied said, “This marks a key achievement toward PIF’s commitment to develop 70% of Saudi Arabia’s renewable energy by 2030. Utilities and Renewables is one of PIF’s priority sectors as part of its domestic strategy, which focuses on unlocking the capabilities of promising sectors to enhance Saudi Arabia’s efforts in diversifying revenue sources”.
“Under the guidance of our visionary leadership and the Ministry of Energy, Saudi Arabia continues to accelerate its ambitious plans for diversifying its energy mix to include renewable energy. It is a great honour to partner with Badeel and SPPC in developing this milestone project which will set a benchmark for sustainable energy development in the region,” said Chairman of ACWA Power Mohammad Abunayyan.
“Solar power is a key component in unlocking positive economic, environmental and social outcomes for the betterment of communities across our great nation. We remain committed to developing local capabilities in technology, supply chain, and talent and ensure they are realised to their fullest potential,” he added.
Badeel and ACWA Power will build, own, and operate Al Shuaibah 2 facility and the electricity produced will be sold to SPPC. When complete, it will power 350,000 homes.
Shuaibah 2 is ACWA Power’s sixth solar energy facility in Saudi Arabia. In addition, the ACWA Power’s KSA portfolio comprises 13 power, water desalination and green hydrogen plants. Badeel and ACWA Power are also developing the Sudair Solar PV 1500 MW project; which was the first cornerstone renewable energy project in PIF’s programme.