Riyadh – Aeswa Power, a major developer, investor and operator of a power plant and saltwater plant, announced the financial closure of the 1,500 MW Solar Solar Factory under the auspices of the Public Investment Fund (PF) Renewable Energy Program.
The Solar Solar Project was first announced in April 2021 at the inauguration of the Sakaka Piv Project, with the support of the Deputy Prime Minister, Chairman of the General Committee for Electricity Production and Renewable Energy, Prince Mohammed bin Salman. Sector, and in the presence of the Minister of Energy, Prince Abdulaziz bin Salman.
A special Saudi technical team from the Ministry of Energy selected the site of the Sudair project and carried out the project’s engineering requirements and initial studies with the aim of contributing to achieving maximum energy production and shaping the carbon economy. The United Kingdom accepted the G20 presidency last year.
Sudaire Solar is a testament to the government’s ongoing efforts to reduce emissions from the energy sector. In addition, the Ministry of Energy is using the Renewable Energy Program and the Local Content Development Program to create competitiveness in this promising sector and supply chain by creating a variety of mandatory investments and promoting partnerships between the public and private sectors as a renewable energy national market.
ACWA Power has announced that SAPCO, which owns Aramco, has partnered with ACA Power and Badel, a full-fledged PIF company. The ACWA-led coalition holds the strategic significance of the first project under the PF Renewable Energy Program.
The program aims to support Saudi Arabia’s continued energy transfer and diversity and to bring 70 percent of the country’s renewable energy under the National Renewable Energy Program (NREP).
ACWA Power – with a 50% stake in PF – and Badel will own 35% of each of the special vehicles included in the project. With a 30% stake in SAPCO.
In the 2021-2025 strategy, the PIF is one of the 13 emerging sectors that will be the focus of the renewal and utilities sector. The strategy focuses on unlocking the private sector capacity, and aims to increase local content contributions to local companies, including PFF and portfolio companies, by expanding opportunities for local companies to participate in fund projects.
Aramco Investment is the first to partner with PF in the renewable energy program in the Sudayer project. Reflecting the company’s efforts to develop sustainable energy solutions in Saudi Arabia, where various low-carbon solutions are being developed.
With an investment value of SR3.4 billion, the Solar Solar PV project in the city of Sudaire Industries is set to become one of the world’s largest solar PV factories and one of the largest in Saudi Arabia.
The plant has signed a 25-year energy procurement agreement with a Saudi power procurement company, the tariff is the lowest in the world for solar PV projects. Using dual-faced modules, the factory is capable of delivering an estimated 2.9 million tons of annual output and delivering 185,000 homes.
The project is financed by a 28-year-old tenant and is based on the principles of reciprocal project finance, which is structured as a soft mini pump facility, both traditional and Islamic. The financial structure will feature equity bridge facilities provided by local and international banks that support the sponsor’s equitable investment in the project.
The financial team includes Mizuho Bank, Limited, Riyadh Bank, Korea Development Bank, Arab Petroleum Investment Corporation (APICORP), Al Rajihi Banking and Investment Corporation, and Standard Charter Bank as senior lenders and senior executives. Equity Bridge Facilities is owned by Bank Al Bilad, Bank of Saudi Arabia and SMBC International PLC.
ACWA Chairperson Mohamed Abuneyan said: “I would like to express my sincere gratitude and pride for the signing of agreements for the first project under PIFI, supported by our commitment and commitment to continue driving the government’s energy sector transition. Renewable energy program.
“Today’s destiny is to advance the vision of 2030 and to meet the requirements of the King’s National Renewable Energy Program, which is being guarded by the two Holy Mosques. Guided by His Highness Prince Mohammed bin Salman, the Minister of Energy, Prince Abdulaziz bin Salman, has extended his unwavering support to achieve this vision.
Abuneyan added, “The launch of the Suder Solar Solar will lay the foundation for accelerating energy integration in the government and accelerating energy transfer, as well as restoring ACWA’s global expertise, knowledge and skills in the global renewable sector.
“The project will encourage Saudi companies to participate in the implementation of renewable energy projects and encourage local talent to develop the skills and abilities needed in this rich sector, which is one of the key pillars of the government’s sustainable social and economic development.
“The Solar Solar Project is also a testament to PIF’s leadership and vision by mobilizing various stakeholders to create real impact in the renewable sector by consolidating strong public and private partnerships (PPPs), one of the cornerstones of Vision 2030.
“We are honored to work hand in hand with the nation’s major national champions, including PIF, Aramco and leading local and international financial institutions. To bring fruition to the largest solar power plant in Saudi Arabia, ”Abuneyan said.
Yazid al-Humaid, deputy director of ANA Investments and head of MENA Investments, said: “This chapter demonstrates the potential of solar energy in Saudi Arabia and the potential of this association. The historic Renewable Energy Project is an important step and key part of PIF’s commitment to developing 70% of Saudi Arabia’s renewable energy potential outlined in Saudi Vision 2030.
“In addition, Saudi Arabia’s Green Initiative TV will help achieve its goals and will provide a way to protect the planet by mobilizing the environment and contributing significantly to achieving global goals in the face of major climate change. ”
Mohammed al-Qahtani, Vice President of the Lower Basin, “Arada “‘s involvement in the Sudayer Solar PV plant reflects our efforts to develop sustainable energy solutions across the energy sector.
“While hydrocarbons will continue to be an integral part of energy integration for decades to come, renewables such as the sun will play a key role in achieving global climate goals. Sudaire supports Saudi Arabia’s desire to generate renewable energy by 2030, and is one of the many low-carbon alternatives to Aramco.
The EPC agreement for the construction of Sudaire Solar Pv was signed in April 2021 with Larson and Tubro. The first phase of the project is expected to start producing electricity in the second half of 2022, which will contribute to the Saudi green initiative. – SG