Under the patronage of the Crown Prince and Saudi Minister of Energy: ACWA Power inaugurates KSA’s first utility scale renewable energy project

Under the patronage of the Crown Prince and Saudi Minister of Energy: ACWA Power inaugurates KSA’s first utility scale renewable energy project
  • Inauguration of Sakaka PV IPP marks a historic moment in the Kingdom’s energy transition as a cornerstone for future renewable energy projects
  • The 300MW PV plant exemplifies the role of PPPs in enabling socio-economic progress in KSA, achieving nearly 100% job localisation

Al Jouf, KSA, 09 April 2021: ACWA Power, a leading Saudi developer, investor and operator of power generation and water desalination plants, today announces the official inauguration of the 300 MW Sakaka PV IPP, KSA’s first utility scale renewable energy project, at an investment value of 1.2 billion Saudi riyals. The ceremony was held under the patronage of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Deputy Prime Minister and Minister of Defense, and in the presence of His Royal Highness Prince Abdulaziz Bin Salman Bin Abdulaziz Al Saud, Saudi Minister of Energy, and Prince Faisal bin Nawaf bin Abdulaziz, Governor of Al-Jouf Region, and senior government officials and representatives from the KSA Ministry of Energy, Al Jouf region, and ACWA Power.

The inauguration of Sakaka PV IPP marks a pivotal moment in the continued energy diversification and development plans of Saudi Arabia. The project was awarded to an ACWA Power led consortium at a world record tariff, at the time, of 8.781 halalas/kWh in 2018, which has paved the way for subsequent projects of the National Renewable Energy Program (NREP) to lower the cost of clean solar electricity in the Kingdom.

Abunayyan stated that the success of completing the Sakaka project in record time embodies a pivotal foundation for diversifying the energy mix and accelerating energy efficiency in the Kingdom, as well as transferring ACWA Power’s international expertise, knowledge and capabilities in the global renewable sector back to the Kingdom. The Sakaka project will encourage local Saudi companies to participate in the implementation of renewable energy projects and support Saudi talent in cultivating the skills and competencies needed in this thriving sector, which constitutes one of the Kingdom’s key pillars for sustainable socioeconomic development.

Al Gihaz Holding, a major Saudi contractor and investor, owns a 30% stake in the Sakaka Solar Energy Company (SSEC), alongside ACWA Power's 70% stake, and was instrumental in both the investment, engineering, procurement and construction of the project.

ACWA Power remains focused on extending its leadership and accelerating the energy transition in Saudi Arabia and beyond through operational excellence and technological expertise, delivering power and desalinated water to communities in thirteen countries worldwide.