Financial close achieved for 1.5 GW solar project in Saudi Arabia

ACWA Power has announced the financial close for the 1500 MW Sudair Solar plant located in Sudair Industrial City in Saudi Arabia.

SAPCO, a fully owned company of Aramco, has joined the consortium with ACWA Power and Badeel, a company fully owned by PIF. The consortium, led by ACWA Power, embodies the strategic importance of the Sudair Solar PV project, the first project under PIF’s renewable energy program. The program aims to support Saudi Arabia’s ongoing energy transition and diversification and to deliver 70% of the country’s renewable energy under the National Renewable Energy Program (NREP).

ACWA Power - in which PIF holds a 50% stake - and Badeel will each own 35% in the special purpose vehicle Sudair One Renewable Energy Company, which was incorporated for the project; with SAPCO holding a 30% stake.

With an investment value of SAR3.4 billion (US$906.2 million), the project is set to become one of the largest single-contracted Solar PV plants in the world and the largest of its kind in Saudi Arabia. A 25-year power purchase agreement for the plant was signed with the Saudi Power Procurement Company, with the tariff being among the lowest for solar PV projects globally. Using bi-facial modules with tracking technology, the plant is set to deliver highly efficient performance and be capable of powering 185,000 homes, while offsetting nearly 2.9 million tons of emissions per year.

The financing group includes Mizuho Bank, Ltd., Riyad Bank, Korea Development Bank, Arab Petroleum Investments Corporation (APICORP), Al Rajhi Banking & Investment Corporation, and Standard Chartered Bank as senior lenders and Mandated Lead Arrangers. The equity bridge facilities are provided by Bank Al Bilad, Saudi British Bank, and SMBC International Plc.