Saudi Arabia’s Water and Electricity Holding Co (Badeel), a wholly owned company of the Public Investment Fund, has with ACWA Power signed power purchase agreements to develop a 2060 MW solar PV plant in Al Shuaibah, Makkah province. This is the largest facility of its kind in the Middle East to date. The project is expected to achieve commercial operation by Q4 2025. It will be jointly owned by Badeel and ACWA Power, with each company holding a 50% equity stake through the establishment of ‘Shuaibah Two Electrical Energy Company’, a joint company dedicated to the development of the project. Shuaibah Two Electrical Energy Company has announced the signing of the power purchase agreement for the project with the Saudi Power Procurement Company.
Badeel and ACWA Power will build, own, and operate Al Shuaibah 2 facility, and the electricity produced will be sold to SPPC.
Shuaibah 2 is ACWA Power’s sixth solar energy facility in Saudi Arabia. Its portfolio in the kingdom comprises 13 power, water desalination and green hydrogen plants. Badeel and ACWA Power are also developing the Sudair Solar PV 1500 MW project, the first renewable energy project in the Public Investment Fund’s programme.