RIYADH: Saudi energy leader ACWA Power has achieved full commercial operation of its Al-Shuaibah 1 Solar Photovoltaic Project, a 600-megawatt renewable initiative.
ACWA Power received formal notice on Nov. 12 from the project company saying that the Saudi Power Procurement Co. has granted the commercial operation certificate for the entire initiative capacity, clearing the way for full-scale production, according to a statement on the Saudi Stock Exchange.
The Al-Shuaibah 1 Solar Project aligns with ACWA Power’s vision to contribute to the Kingdom’s renewable energy targets and underscores its role as a leading provider of sustainable energy solutions in the region.
ACWA Power owns a 35.01 percent stake in the initiative, and the firm anticipates that the financial impact of this milestone will be reflected in its fourth-quarter financial results for 2024.
The achievement comes following a particularly successful year for ACWA Power. For the first nine months of the year, the company reported a robust 16 percent increase in profits, underpinned by growth in its power and water production operations.
Net profit attributable to equity holders reached SR1.25 billion ($334 million), compared to the same period in 2023, supported by a 12.5 percent rise in operating income, which hit SR2.36 billion.
The performance was largely driven by strategic financial moves, including an investment profit from restructuring a project and a capital recycling gain, enabling ACWA Power to efficiently reinvest capital for further growth.
The Al-Shuaibah project’s success reflects ACWA Power’s growing investment and development portfolio. Over the past nine months, the company has achieved financial closure on seven major undertakings with a combined worth of SR31 billion.
These include initiatives in Saudi Arabia, such as the Taiba and Qassim Combined Cycle Gas Turbine projects, which are expected to enhance the Kingdom’s power grid stability and efficiency.
Other recent undertakings include the Tashkent Solar PV project in Uzbekistan, part of ACWA Power’s broader commitment to renewable energy development in Central Asia, and the Hassyan Seawater Reverse Osmosis plant in the UAE, which is aimed at bolstering the country’s water security and desalination capabilities.
ACWA Power has been working internationally, cementing its global presence and expanding its investment footprint, in addition to its operational achievements.
At the Future Investment Initiative in Riyadh in October, the company signed four agreements valued at a combined SR6.69 billion, enhancing its capital base and project pipeline.
The contracts include a $690 million framework deal with the National Bank of Kuwait, providing corporate finance facilities that will support ACWA Power’s projects in the Kingdom, Kuwait, and other targeted markets.
Further diversifying its financing sources, ACWA Power secured a $240 million Shariah-compliant equity bridge loan from the International Finance Corp. to fund solar projects in Uzbekistan.
Uzbekistan has emerged as a key market for ACWA Power in recent years, with the company playing a central role in the country’s transition toward renewable energy.
Rounding out its expansion efforts, ACWA Power entered into a $54 million research and development agreement with China’s Lujiazui Administration Bureau, targeting innovation in advanced energy solutions.
The research and development pact will establish a center in Shanghai focused on advancing technologies in solar, wind, and energy storage, as well as green hydrogen and desalination areas that are pivotal to addressing global energy and water challenges.
