Riyadh – Mubasher: ACWA Power Company has penned three power purchase agreements (PPAs) with Saudi Power Procurement Company (SPPC) and Saudi Aramco Power Company, a wholly owned subsidiary of Saudi Arabian Oil Company (Aramco), for three large-scale solar photovoltaic (PV) plants, according to a bourse filing.
The PPAs have been signed on 26 June 2024 between Saudi Power Procurement and the individual project companies Buraiq Renewable Energy Company, Moya Renewable Energy Company, and Nabah Renewable Energy Company, all of which will be owned by ACWA Power.
In addition, Badeel, a wholly owned company by the Public Investment Fund (PIF), will be a partner in the project with 34.90% equity in each of the three project companies.
The combined value of the three agreements is SAR 12.30 billion ($3.30 billion), while the duration for each PPA is 25 years.
The PV solar plants are Haden and Muwayh with a production capacity of 2,000 megawatts (MW) each, and Al Khushaybi with 1,500 MW. All facilities are located in the western and northern regions of Saudi Arabia.
The agreements cover the development, financing, construction, ownership, and operation of the three green projects, with their financial impact of the contracted revenues projected to reflect after the Commercial Operation Dates (PCOD) expected by the first half (H1) of 2027.
ACWA Power has been recently part of power plants deal that included delivering power starting from 2027 under services deals with the company’s subsidiary NOMAC.
During the first quarter (Q1) of 2024, ACWA Power registered net profits to the equityholders worth SAR 296.17 million and revenues of SAR 1.25 billion.
