ACWA Power Inaugurates First Utility Renewable Project in Saudi

ACWA Power has announced the inauguration of the 300 MW Sakaka PV IPP, Saudi Arabia’s first utility-scale renewable energy project

ACWA Power, a leading Saudi developer, investor and operator of power generation and water desalination plants, has announced the official inauguration of the 300 MW Sakaka PV IPP, the Kingdom of Saudi Arabia’s (KSA) first utility-scale renewable energy project, at an investment value of 1.2 billion Saudi riyals. 

The ceremony was held under the patronage of Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Deputy Prime Minister and Minister of Defense. 

“The private sector plays a fundamental role in the development of renewable energy projects in the Kingdom. The Sakaka project we are inaugurating was developed by ACWA Power, together with various Saudi companies that have worked alongside ACWA Power to make this remarkable achievement a reality. One of its most important projects is Sakaka PV is that 97 percent of the operating team are Saudis, and 90 percent of the workforce is from Al Jouf region” said Prince Abdulaziz Bin Salman Bin Abdulaziz Al Saud, Saudi Minister of Energy.

The inauguration of Sakaka PV IPP marks a pivotal moment in the continued energy diversification and development plans of Saudi Arabia. The project was awarded to an ACWA Power led consortium at a world record tariff, at the time, of 8.781 halalas/kWh (Rs 1.75/kWh) in 2018, which has paved the way for subsequent projects of the National Renewable Energy Program (NREP) to lower the cost of clean solar electricity in the Kingdom.

Al Gihaz Holding, a major Saudi contractor and investor, owns a 30 percent stake in the Sakaka Solar Energy Company (SSEC), alongside ACWA Power’s 70 percent stake, and was instrumental in both the investment, engineering, procurement and construction of the project.

Mohammad Abunayyan, ACWA Power Chairman stated that the success of completing the Sakaka project in record time embodies a pivotal foundation for diversifying the energy mix and accelerating energy efficiency in the Kingdom, as well as transferring ACWA Power’s international expertise, knowledge and capabilities in the global renewable sector back to the Kingdom.