With the completion of the financing for Al-Shuaibah 1 and Al-Shuaibah 2 at a total investment of SR8.3 billion ($2.2 billion) using a mix of long-term debt and equity, Saudi Arabia has intensified its efforts to develop the largest solar project in the world. SR 6.1 billion in senior debt, including an SR 1.7 billion loan from the National Development Fund on behalf of the National Infrastructure Fund, according to the announcement made by ACWA Power in a bourse filing.
Additionally, a group of local, regional, and foreign institutions, including Bank Saudi Fransi, First Abu Dhabi Bank, and Mizuho Bank, provided a commercial facility of SR4.4 billion in US dollars. Riyad Bank, the Saudi National Bank, Standard Chartered Bank, and the Saudi Investment Bank are the other banks in the partnership.
To build the solar power plant with the ability to power 350,000 homes, ACWA Power and the Water and Electricity Holding Co., also known as Badeel, signed power purchase agreements in November. By the fourth quarter of 2025, the 2,060 megawatt solar photovoltaic project is anticipated to start operating for profit.
The consortium included the Saudi Arabian Oil Company and the Public Investment Fund unit Badeel, with ACWA Power owning a 35 percent equity interest. The project, which is a component of Saudi Arabia's energy transition strategy, illustrates the importance of giga-scale development in sustainable energy for achieving the objectives of Vision 2030.
By 2030, the PIF wants to generate 70% of the Kingdom's potential for renewable energy.