ACWA Power and SPPC to develop a 700MW solar farm in Saudi Arabia

Saudi power producer ACWA Power and the Saudi Power Procurement Company (SPPC) have joined hands to develop a 700MW solar farm.

The duo signed a power purchase agreement to develop the project in the Middle Eastern country. The Ar Rass plant will be located in Saudi Arabia’s Al Qassim province.

It has been reported that the latest agreement is for $450million.

According to the company, under the agreement, ACWA Power will sell energy produced by the solar plant to SPPC for 25 years.

This particular plant is the largest PV project tendered as part of Saudi Arabia’s National Renewable Energy Programme, a report mentioned, adding that "ACWA Power has been earmarked to deliver 70% of the total 58.7GW target."

In the project, ACWA Power will hold a 40.1% stake.

The Ar Rass solar project is expected to reach financial close in the fourth quarter of 2022.

Saudi Arabia plans to develop many renewable energy projects totalling 15GW of capacity within next year.

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