Riyadh – Mubasher: ACWA Power Company has teamed up with the Water and Electricity Holding Company (Badeel), a wholly-owned entity by the Public Investment Fund (PIF), for Al Shuaibah photovoltaic (PV) solar energy plant in Makkah.

Al Shuaibah 2 facility is the largest solar PV plant in the MENA region with a production capacity of 2,060 megawatts (MW), according to a press release.

Deputy Governor and Head of MENA Investments at PIF, Yazeed Al Humied, said: “This marks a key achievement toward PIF’s commitment to develop 70% of Saudi Arabia’s renewable energy by 2030.”

Al Humied noted: “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.”

The Shuaibah-located solar plant will be equally owned by Acwa Power and Badeel through the founding of Shuaibah Two Electrical Energy Company, which has penned a $1.75 billion contract with Saudi Power Procurement Company (SPPC) for the project.

The 35-year agreement that was inked on 29 November 2022 covers the development, financing, and operational works of the solar power plant.

ACWA Power indicated that the purchase deal will reflect on its income statements once execution of the project commences by the fourth quarter (Q4) of 2025.

In the first nine months (9M) of 2022, the listed company posted a 110.37% hike in net profit after Zakat and tax to SAR 883.42 million, compared to SAR 419.94 million in 9M-21.