ACWA Power Receive Commercial Operation Certificate for Sudair Solar Plant

Saudi Arabia’s ACWA Power Company, one of the major energy firms in the Middle East and North Africa (MENA) region, on Monday said that it has received commercial operation certificate for Group 2 of Sudair Solar Photovoltaic project in the Kingdom.

In a statement filed with Tadawul, the Saudi Exchange where its shares are traded, the company said that the Saudi Power Procurement Company (SPPC) has issued the certificate on Sunday.

Group 2 of Sudair project includes additional 25% to Group 1 which achieved commercial operation last month and announce on 28 September 2023, bringing total capacity that achieved commercial operation to 1.125 GW out of the 1.5 GW plant capacity upon completion.

Upon completion, the Sudair plant is expected to provide power supply to 185,000 Saudi households and offset up to 2.9 million tonnes (MTs) of carbon emissions a year.

ACWA Power owns a net stake of 35% in Sudair One Renewable Energy Company. The Company expects financial impact of operation to be reflected starting from Q4 of 2023, the company’s statement added.

Sudair Solar PV project is poised to become one of the largest single-contracted solar PV plants in the world and the largest of its kind in Saudi Arabia at an installed capacity of 1.5 GW. It is the first project under The Public Investment Fund’s (PIF) renewable energy programme and has recorded the second lowest cost globally for Solar PV electricity production of $1.239 cents/kwh.

The PIF-backed consortium, led by ACWA Power, signed a power purchase agreement with the Saudi Power Procurement Company for 25 years. Sudair PV IPP will be capable of powering 185,000 homes and offsetting nearly 2.9 million tons of emissions per year.

The consortium partners of the Sudair solar power project includes ACWA Power (35%), Water and Electricity Holding (Badeel, 35%), and Saudi Aramco Power Company (SAPCO, 30%).

The Sudair solar power project is being built in the Riyadh province of Saudi Arabia. Sudair One Renewable Energy Company, a special purpose vehicle (SPV), is developing the project with an estimated investment of $906 million.

The project is being developed in line with Saudi Arabia’s National Renewable Energy Programme (NREP) that aims to achieve 58.7 GW of renewable energy capacity by 2030. PIF has been entrusted by the Kingdom to provide 70% of the target capacity.

Badeel is a portfolio company of the Public Investments Fund (PIF), the sovereign wealth fund of Saudi Arabia that also holds a 50% stake in ACWA Power, while SAPCO is a wholly owned subsidiary of state-owned Saudi Aramco.

Project Location

The Sudair PV solar power plant is being developed on a 30.2 sq km site within the Sudair industrial city, approximately 150 km away from Saudi Arabia’s capital Riyadh. The site lies approximately 25 km south-east of Al Majmahh, in the Riyadh province of Saudi Arabia.