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ACWA Power agrees new power plant deal in Saudi Arabia

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ACWA Power and the Saudi Power Procurement Company (SPPC) have a power purchase agreement (PPA) to develop the 700 MW power plant (IPP) in Saudi Arabia’s Al Qassim province.
Under the terms of the agreement, the developer, investor and operator of power generation, desalinated water and green hydrogen plants, will sell energy produced by the project to SPPC for a period of 25 years.
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, and 39.9%will be owned by the State Power Investment Corporation from China.
When fully functional, the project will produce energy to power around 132,000 homes in central Saudi Arabia.
The Minister of Energy announced that the energy sector aims to launch several renewable energy projects to produce approximately 15,000 megawatts of clean energy between the years 2022 and 2023, with the aim of diversifying the energy mix and achieving its designated targets.
Mohammad Abunayyan, ACWA Power Chairman, said: “As Saudi Arabia’s leadership ramps up its multi- gigawatt plans for diversifying its energy mix to include renewable energy, solar power is a key component in unlocking positive economic, environmental and social outcomes, whether it is for consumer use, or in mega-projects.
“At ACWA Power, we are proud to be part of this larger story and will work diligently to realising the multiplying effect of solar power, whether it is in job production or emissions mitigation. We thank our partners in the Ministry of Energy for entrusting us with this important project so that we can work in the delivery of our mission in providing responsible, reliable and affordable power.”