Saudi Arabia To Add 15 GW Through 7 Green Projects

A significant milestone on Saudi Arabia's clean energy vision, seven giant renewable energy projects power purchase agreements (PPAs) were signed and will add a combined 15-gigawatt (GW) capacity to the national grid. The $8.3 billion (SAR 31 billion) worth of projects are anticipated to achieve financial close during the third quarter of 2025 and commissioning by late 2027 or early 2028. The signings took place in the presence of His Royal Highness Prince Abdulaziz bin Salman Al Saud, Minister of Energy, and represent an important milestone for the energy transition of the Kingdom as part of Vision 2030.

The scheme is led by three of the titans—ACWA Power, Saudi Aramco Power Company (SAPCO), and the Water and Electricity Holding Company (Badeel) that is wholly owned by the Public Investment Fund (PIF). The three entities will jointly own and build the new projects that will go a great distance in complementing the Kingdom's National Renewable Energy Program (NREP) goals. Of 15 GW of clean capacity to be generated, 12 GW will come through solar photovoltaic (PV) facilities and 3 GW of wind power, contributing to Saudi Arabia's diversification of the renewable resources.

The seven projects are spread across different parts of the Kingdom, some in Bisha in the region of Asir (3,000 MW solar PV), others in Humaij in Madinah (3,000 MW solar PV), Khulis in Makkah (2,000 MW solar PV), Afif 1 and 2 in Riyadh (each 2,000 MW solar PV), Starah in Riyadh (2,000 MW wind), and Shaqra in Riyadh (1,000 MW wind). These efforts will enhance the strength of Saudi Arabia's energy industry while advancing more general socio-economic objectives like jobs, supply chain localization, and foreign and domestic investment.

The deals are part of a wider drive by Saudi Arabia to position itself as a world leader in renewable energy. As part of its Vision 2030 plan, the Kingdom has pledged to add 130 GW of renewable energy capacity by 2030. A major driver of this vision is the PIF's role in helping the Kingdom achieve 70% of its target for renewable energy. The PIF, through its subsidiary Badeel, is using strategic partnerships to deploy capital and technical capabilities to create a sustainable future.

ACWA Power CEO Marco Arcelli highlighted the importance of the new contracts, calling them a significant leap for the nation's endeavor to transform its energy sector. "This historic agreement is a huge milestone in Saudi Arabia's strategic vision for a more sustainable and more resilient energy future," Arcelli added. "It is a reflection of our commitment to partner with SPPC, PIF, and Aramco as we collaborate to drive this step shift toward a more sustainable energy future.".

ACWA Power, a seasoned player in the Middle East's power industry, will see its Saudi Arabian renewable portfolio rise to 34 GW with the addition of these new projects. ACWA Power's global renewable energy portfolio is more than 51.9 GW, making it one of the world's leading clean energy developers. The projects also add to a broader joint renewables pipeline of the three partners, 28.6 GW and aggregated investments of $17 billion (SAR 63.75 billion).

The investment by Aramco is an extension of its diversification strategy of hydrocarbons. With its SAPCO and New Energies division, the energy giant is positioning itself increasingly with national and international sustainability objectives. Waleed Al Saif, Aramco Senior Vice President, New Energies, elaborated further that company investment in such initiatives is an extension of a bid to leverage the Kingdom's massive natural resources and develop a holistic renewable energy system. "Through such investments, we seek to derive additional value from Saudi Arabia's rich natural resources and expand Aramco's New Energies portfolio," Al Saif said.

Badeel's Interim Acting Chief Executive Sultan AlNabulsi also emphasized the economic and strategic significance of the investment. He described how the project would not only boost the national energy sector but also act as a driver of the economy in its entirety by further bolstering the Kingdom's investment environment and industrial potential.

These investments are the culmination of a string of Saudi Arabian high-profile clean energy projects, including the Sudair, Shuaibah 2, Ar Rass 2, and Al Kahfah renewable power plants. The overall impact of these investments is the Kingdom's growing momentum toward its energy transition objectives.

By making commitments to solar and wind at scale and uniting government, private sector, and sovereign wealth fund know-how, Saudi Arabia is announcing its intention to be a global leader on renewable energy. Delivery of those commitments reflects not only technical and financial capacity to go after clean energy at scale but also the Kingdom's commitment to fulfilling climate objectives while diversifying the economy and lowering dependence on oil.