Saudi Arabia has taken a significant step towards cleaner energy under its vision 2030 strategy. A consortium led by ACWA Power, alongside Badeel and Saudi Aramco Power Company (SAPCO), has committed to investing $8.3bn to develop 15GW of renewable energy capacity. [1].
Figure 1: Bolero PV project. [2]
The Investment
Seven projects have been proposed consisting of five new solar photovoltaic (PV) plants and two wind power plants. The solar PV plants account for 12GW, with the wind power plants making up the remaining 3GW. The projects play a significant role in Saudi Arabia’s National Renewable Energy Programme (NREP), which is led and supervised by the Ministry of Energy and is reflected in PIF’s (Public Investment Fund) commitment to development 70% of Saudi Arabia’s renewable energy target capacity by 2030. [3].
The new renewable energy plants include:
Solar
- Bisha;
- Humaij;
- Khulis;
- Afif1;
- Afif2.
Wind
- Starah;
- Shaqra.
Power purchase agreements have been signed with the state off-taker, Saudi Power Procurement Company (SPPC). [4].
Why Invest?
The $8.3bn investment marks the largest investment in a single phase under Saudi Arabia’s NREP. At the end of 2024, the renewables capacity in Saudi Arabia stood at 4.34GW, far below the 130GW target for the end of 2030. This investment will provide an additional 15GW, dramatically increasing that figure to reach those goals. [5].
Marco Arcelli, Chief Executive Officer at ACWA Power, commented on the signing: “This landmark agreement represents a significant milestone in Saudi Arabia’s strategic vision for a more resilient and more sustainable energy landscape, underscoring the nation’s steadfast commitment to achieving its ambitious renewable energy targets. As the largest and most comprehensive agreement to date under the National Renewable Energy Programme (NREP), it reflects our dedication to collaborate with the Saudi Power Procurement Company (SPPC), PIF and Aramco as we collectively advance this step shift towards a more sustainable energy future.”
In addition to boosting the renewable capacity, the investment will leverage Saudi Arabia’s solar and wind resources to free oil and gas for export, and encourage movement within the green hydrogen sector and bolster clean-tech leadership.
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References
[1] https://www.arabnews.com/node/2607947/business-economy
[2] Antonio Garcia (August 2017) from Unnsplash.com. Last accessed on 16th July 2025. Available at: https://unsplash.com/photos/landscape-photography-of-blue-solar-panels-ndz_u1_tFZo
[6] https://www.ft.com/content/4bb56e48-7385-4566-8e73-a863c3f5a63b
