Saudi Arabia is advancing its largest renewable energy initiative, the 2.6 GW Al Shuaibah solar power plant, backed by significant financing. According to a press release, the project secured 8.3 billion Riyals ($2.2 billion) in funding, with 1.7 billion Riyals provided by the National Infrastructure Fund—marking its first investment in a project sponsored by Saudi Aramco.
The Al Shuaibah plant is being developed through a partnership between Saudi Aramco, the Badeel Water and Power Company, and ACWA Power. Commercial operations are expected to begin in 2025. The Public Investment Fund, Saudi Arabia’s sovereign wealth fund, holds ownership stakes in both Badeel and ACWA Power.
Currently, Saudi Arabia is developing 13 renewable energy projects with a total capacity of 11.3 GW. Badeel alone is leading five projects totaling 8 GW and over $6 billion in investment. These efforts are part of the nation’s strategy to achieve carbon neutrality by 2060.
In May, Badeel and ACWA Power signed agreements with Saudi Power Procurement Company for three large-scale solar projects—Ar Rass 2, Saad 2, and Al Kahfah—with a combined capacity of 4.55 GW and a total value of 12.2 billion Riyals. Financial closure for these projects is expected in the third quarter of 2023.
Saudi Arabia continues to expand its renewable energy capacity, aiming for substantial growth in solar and wind power as part of its long-term environmental goals.
