ACWA Power’s Al-Shuaibah Solar Project Begins Commercial Operations in Saudi Arabia
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ACWA Power has officially launched the Al-Shuaibah 1 Solar Photovoltaic Project, a significant renewable energy initiative with a capacity of 600 megawatts. The company received formal notification on November 12, 2024, confirming that the Saudi Power Procurement Company had issued the commercial operation certificate for the entire project, allowing for full-scale production, as reported on the Saudi Stock Exchange.
The Al-Shuaibah 1 Solar Project aligns with ACWA Power’s commitment to supporting Saudi Arabia’s renewable energy goals and highlights its position as a leading provider of sustainable energy solutions in the region. ACWA Power retains a 35.01 percent stake in this initiative and expects that the financial impact of this achievement will be reflected in its fourth-quarter results for 2024.
This milestone follows a particularly successful year for ACWA Power, which reported a remarkable 16 percent increase in profits during the first nine months of 2024. The net profit attributable to equity holders reached SR1.25 billion ($334 million), compared to the same period in 2023, buoyed by a 12.5 percent rise in operating income to SR2.36 billion. The company’s strong performance was driven by strategic financial maneuvers, including profit from restructuring projects and capital recycling gains, which facilitated further investments.
The success of the Al-Shuaibah project reflects ACWA Power’s expanding investment and development portfolio. Over the past nine months, the company has achieved financial closure on seven major projects worth a combined total of SR31 billion. These projects include the Taiba and Qassim Combined Cycle Gas Turbine initiatives in Saudi Arabia, which are anticipated to enhance the stability and efficiency of the Kingdom’s power grid.
Additionally, ACWA Power is advancing its international efforts, with projects such as the Tashkent Solar PV project in Uzbekistan, contributing to renewable energy development in Central Asia, and the Hassyan Seawater Reverse Osmosis plant in the UAE, aimed at improving the country’s water security and desalination capabilities.
At the Future Investment Initiative in Riyadh in October, ACWA Power signed four agreements totaling SR6.69 billion, bolstering its capital base and project pipeline. This includes a $690 million framework agreement with the National Bank of Kuwait to provide corporate finance facilities for projects in Saudi Arabia, Kuwait, and other targeted markets. To further diversify its financing sources, ACWA Power secured a $240 million Shariah-compliant equity bridge loan from the International Finance Corporation to support solar projects in Uzbekistan.
Moreover, ACWA Power has initiated a $54 million research and development agreement with China’s Lujiazui Administration Bureau, which aims to foster innovation in advanced energy solutions. This partnership will establish a center in Shanghai focused on developing technologies in solar, wind, energy storage, green hydrogen, and desalination, all crucial in addressing global energy and water challenges.
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