ACWA Power signs PPA for 700 MW Solar PV project in Saudi Arabia

ACWA Power and the Saudi Power Procurement Company (SPPC) have signed a power purchase agreement (PPA) for the 700 MW Ar Rass solar photovoltaic independent power plant (IPP) in Saudi Arabia’s Al Qassim province. 

Under the terms of the agreement, ACWA Power will sell energy produced by the project to SPPC for a period of 25 years. Valued at US$450 million, Ar Rass is the largest PV project that has been tendered as part of Saudi Arabia’s National Renewable Energy Programme (NREP) to date.

ACWA Power will hold a 40.1% stake in the facility, along with 20% by the Water and Electricity Holding Company (Badeel), a wholly owned PIF Portfolio Company, and 39.9% will be owned by the State Power Investment Corporation from China. When fully functional, the project will produce energy to power around 132,000 homes in central Saudi Arabia.