ACWA Power has announced financial close for the 1500 MW Sudair solar plant, one of the world’s largest single-contracted solar PV plants and the largest in Saudi Arabia. It is a key project under the country’s Public Investment Fund (PIF) renewable energy programme, which aims to support Saudi Arabia’s ongoing energy transition and diversification, and to deliver 70% of the country’s renewable energy under the National Renewable Energy Programme (NREP).
The launch of the Sudair Solar project was announced at the inauguration of Sakaka PV project in April this year. ACWA Power also announced that SAPCO, a fully owned company of Aramco, have joined the consortium with ACWA Power and Badeel, a company fully owned by PIF.
ACWA Power – in which PIF holds a 50% stake – and Badeel will each own 35% in the special purpose vehicle ‘Sudair One Renewable Energy Company’, which was incorporated for the project, with SAPCO holding a 30% stake.
With an investment value of SAR 3.4 billion, the Sudair project, which is located at Sudair Industrial City, is set to become one of the largest single-contracted Solar PV plants in the world. A 25-year power purchase agreement for the plant was signed with the Saudi Power Procurement Company, with the tariff being among the lowest for solar PV projects globally.
The financing group includes Mizuho Bank, Ltd., Riyad Bank, Korea Development Bank, Arab Petroleum Investments Corporation (APICORP), Al Rajhi Banking & Investment Corporation, and Standard Chartered Bank as senior lenders and Mandated Lead Arrangers. The equity bridge facilities are provided by Bank Al Bilad, Saudi British Bank and SMBC International Plc.