The project is the largest facility of its kind in the Middle East to date and is expected to achieve commercial operation by Q4 2025.
The project will be jointly owned by Badeel and ACWA Power. Each company will hold a 50 percent equity stake through the establishment of Shuaibah Two Electrical Energy Company, a joint company dedicated to the development of the project, which has announced the signing of the power purchase agreement for the project with the Saudi Power Procurement Company (SPPC).
“This marks a key achievement toward PIF’s commitment to develop 70 percent of Saudi Arabia’s renewable energy by 2030” said Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF. “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”
Mohammad Abunayyan, ACWA Power Chairman, added that Saudi Arabia continues to accelerate its ambitious plans for diversifying its energy mix to include renewable energy and that it is a great honour to partner with Badeel and SPPC in developing the project which will set a benchmark for sustainable energy development in the region.
Badeel and ACWA Power will build, own, and operate Al Shuaibah 2 facility and the electricity produced will be sold to SPPC. When complete, it will power 350,000 homes.
Shuaibah 2 is ACWA Power’s sixth solar energy facility in Saudi Arabia. In addition, the ACWA Power’s KSA portfolio comprises 13 power, water desalination and green hydrogen plants. Badeel and ACWA Power are also developing the Sudair Solar PV 1500 MW project; which was the first cornerstone renewable energy project in PIF’s programme.
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