The Water and Electricity Holding Co. (Badeel), a unit owned by the Public Investment Fund (PIF), and ACWA Power, a Saudi developer, investor and operator of power generation, water desalination and green hydrogen plants worldwide, signed power purchase agreements to develop a 2,060 MW solar photovoltaic (PV) plant in Al Shuaibah, Makkah province.
The project is expected to achieve commercial operation by Q4 2025.
The project will be jointly owned by Badeel and ACWA Power. Each company will hold a 50% equity stake through the establishment of Shuaibah Two Electrical Energy Co., a joint company dedicated to the development of the project.
In the same context, the Shuaibah Two Electrical Energy Co. announced the signing of the power purchase agreement for the project with the Saudi Power Procurement Co., the offtaker within this project that is a concrete representation of the energy transition in play—a gigawatt scale development in sustainable energy that will play a key role in translating Saudi Vision 2030 goals.
Badeel and ACWA Power will build, own, and operate Al Shuaibah 2 facility and the electricity produced will be sold to SPPC. When complete, it will power 350,000 homes.
Shuaibah 2 is ACWA Power’s sixth solar energy facility in Saudi Arabia. In addition, the ACWA Power’s KSA portfolio comprises 13 power, water desalination and green hydrogen plants. Badeel and ACWA Power are also developing the Sudair Solar PV 1500 MW project; which was the first cornerstone renewable energy project in PIF’s program.
