Saudi Arabia’s state-owned power procurement company, Principal Buyer, has entered agreements worth SR31bn ($8.3bn) with a consortium led by ACWA Power for the development of seven new solar and wind power projects with a combined capacity of 15GW.
The ventures are part of the National Renewable Energy Programme overseen by the Ministry of Energy, and aim to strengthen the country’s renewable energy infrastructure.
The signing ceremony took place in the presence of Minister of Energy Abdulaziz bin Salman bin Abdulaziz Al Saud, alongside members from the board of directors of Principal Buyer.
The consortium, led by ACWA Power as chief developer, includes the Water and Electricity Holding Company, owned by the Public Investment Fund, and Saudi Arabia’s Aramco Power.
The consortium will develop photovoltaic (PV) solar projects: the 3GW Bisha project in the Asir region, the 3GW Humaij project in the Madinah region and the 2GW Khulis project in the Makkah region.
The Afif 1 and Afif 2 projects in the Riyadh region, with a cumulative capacity of 4GW, will also be developed.
Wind energy projects include the 2GW Starah project and the 1GW Shaqra project in the Riyadh region.
The collective agreement marks the largest-ever single-phase commitment to renewable energy development internationally.
It underscores Saudi Arabia's commitment to leading on climate action through affordable electricity production while simultaneously raising investor confidence within its borders.
Principal Buyer plays a pivotal role in conducting feasibility studies, managing tenders for generation projects and finalising purchase contracts with developers' consortia.
The company has initiated renewable electricity generation projects with a combined capacity of 43,213MW to date.
In November 2024, the Saudi Power Procurement Company finalised agreements for power purchase with five independent power producer ventures.
These projects encompass thermal and solar photovoltaic energy initiatives, collectively contributing a significant 9.2GW to the grid.
