Badeel and ACWA Power signed agreements to develop a 2,060 MW solar photovoltaic (PV) plant in Al Shuaibah

The Water and Electricity Holding Company (Badeel), a wholly-owned subsidiary of the Public Investment Fund (PIF), and leading Saudi developer ACWA Power on Wednesday signed power purchase agreements to develop a 2,060 MW solar photovoltaic (PV) plant in Al Shuaibah in the Makkah region.

The project which is the largest facility of its kind in the Middle East to date, is expected to start commercial operation by Q4 2025. The project will be jointly owned by Badeel and ACWA Power, a leading investor and operator of power generation, water desalination and green hydrogen plants worldwide.

Each company will hold a 50% equity stake through the establishment of " Shuaibah Two Electrical Energy Company", a joint stock company dedicated to the development of the project.

The Shuaibah Two Electrical Energy Company announced the signing of the power purchase agreement for the project with the Saudi Power Procurement Company (SPPC), the off-taker within the project. The solar power plant is a concrete representation of the energy transition in play — a giga scale development in sustainable energy that will play a key role in translating Saudi Vision 2030 goals.

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, 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 program.