Agreement signed to build Saudia Arabia’s largest solar energy plant to date.

The Water and Electricity Holding Company (Badeel) – a wholly owned company by the Public Investment Fund (PIF) – and ACWA Power – a leading Saudi developer, investor, and operator of power generation, water desalination and green hydrogen plants worldwide – have signed a power purchase agreement to develop a 2,060 MW solar photovoltaic plant in Al Shuaibah, Makkah province. This is the largest facility of its kind in the Middle East to date. The project is expected to achieve commercial operation by 2025.

The project will be jointly owned by Badeel and ACWA Power; each company will hold a 50% equity stake.

“This marks a key achievement toward PIF’s commitment to develop 70% of Saudi Arabia’s renewable energy by 2030. Utilities and Renewables is one of PIF’s priority sectors as part of its domestic strategy, which focuses on unlocking the capabilities of promising sectors to enhance Saudi Arabia’s efforts in diversifying revenue sources.” Said Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF.

The project aims to develop 70% of the nation’s renewable energy through PIF by 2030.

“Solar power is a key component in unlocking positive economic, environmental, and social outcomes for the betterment of communities across our great nation. We remain committed to developing local capabilities in technology, supply chain, and talent and ensure they are realised to their fullest potential,” said Mohammad Abunayyan, ACWA Power Chairman.