ACWA Power Achieves Financial Close for 1500 MW Sudair Solar Plant

Highlights :

  • Using bi-facial modules with tracking technology, the plant is expected to be capable of powering 185,000 homes, while offsetting nearly 2.9 million tons of emissions per year.
  • The project is being built under the Public Investment Fund (PIF) renewable energy program in the country, 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 Program (NREP).

ACWA Power, based in Saudi Arabia, has announced the financial close for the 1500 MW Sudair Solar plant, a key project under the Public Investment Fund (PIF) renewable energy program in the country.

The program 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 Program (NREP).

The launch of the Sudair Solar project was announced at the inauguration of Sakaka PV project in April 2021, under the patronage of Prince Mohammed bin Salman bin Abdulaziz, Crown Prince, the Kingdom of Saudi Arabia.

Further, SAPCO, a fully-owned company of Aramco, has 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.

Renewables and Utilities sector is one of the 13 priority sectors that PIF identified as a key focus area in its Strategy 2021-2025. The strategy focuses on unlocking the capabilities of the private sector, and aims to increase local content contribution to 60% Including PIF and its portfolio companies, in addition to expanding opportunities for local companies to partake in the Fund’s projects. Aramco’s investment in the Sudair Project is its first participation with PIF in its renewable energy program.

With an investment value of SAR 3.4 billion, Sudair Solar PV project, which is located at Sudair Industrial City, is set to become one of the largest single-contracted solar PV plants in the world and the largest of its kind in Saudi Arabia, said ACWA. A 25-year power purchase agreement for the plant was signed with the Saudi Power Procurement Company. Using bi-facial modules with tracking technology, the plant is expected to be capable of powering 185,000 homes, while offsetting nearly 2.9 million tons of emissions per year.

The financing for the project is based on the principles of limited recourse project financing, with the senior debt structured as a soft mini perm facility with a tenor of 28 years and both conventional as well as Islamic tranches. The financing structure also features a set of equity bridge facilities provided by local and international banks supporting the sponsor group’s equity investment in the project.

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.

"Want to be featured here or have news to share? Write to info[at]saurenergy.com

Soumya Duggal

Soumya is a master's degree holder in English, with a passion for writing. It's an interest she has directed towards environmental writing recently, with a special emphasis on the progress being made in renewable energy.

      SUBSCRIBE NEWS LETTER
Scroll