Acwa Power and SPPC ink deal to develop 700MW solar project
The project will be able to produce energy to power around 132,000 homes in central Saudi Arabia
A power purchase agreement has been inked between Acwa Power and Saudi Power Procurement Company (SPPC) for the 700MW Ar Rass solar photovoltaic independent power plant (IPP) in the Kingdom’s Al Qassim province.
The Ar Rass IPP is expected to reach its financial close in Q4 this year and when functional, the project will be able to produce energy to power around 132,000 homes in central Saudi Arabia.
The agreement was signed in the presence of HRH Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, Minister of Energy of Saudi Arabia. As per the agreement, Acwa Power will sell energy produced by the project to SPPC for a period of 25 years.
According to a statement from Acwa Power, the project is valued at $450mn and is the largest PV project that has been tendered as part of Saudi Arabia’s National Renewable Energy Programme (NREP) to date. Acwa Power is said to have been earmarked to deliver 70% of the total 58.7GW target.
Acwa Power will hold a 40.1% stake in the facility, along with 20% by the Water and Electricity Holding Company (Badeel), a wholly-owned PIF Portfolio Company, while 39.9% will be owned by the State Power Investment Corporation from China.