Saudi renewables developer Acwa Power has signed financing agreements for the SAR 8.3 bn (USD 2.2 bn) Al Shuaibah 1 and Al Shuaibah 2 PV projects, according to a disclosure on Tadawul yesterday. The capital was raised from a combination of long-term debt and equity financing, the disclosure noted.

The details: Acwa Power secured a total of SAR 6.1 bn (USD 1.6 bn) in senior debt, including SAR 1.7 bn (USD 450 mn) from KSA’s National Development Fund, SAR 4.4 bn (USD 1.2 bn) in a USD-denominated debt facility from Bank Saudi Fransi, First Abu Dhabi Bank, Mizuho Bank, Riyad Bank, Saudi National Bank, Standard Chartered Bank, and Saudi Investment Bank. Equity financing will provide the remainder of the capital for the project.

The projects: Al Shuaibah 1 is an independent water and power project (IWPP) whose first phase saw the construction of a 900 MW desalination plant capable of producing some 880k m3/day of desalinated water. Planned expansion will see its capacity grow to some 1 mn m3/day. The USD 1.75 bn Al Shuaibah 2 solar energy plant is set to be the largest of its kind in the region with a 2.06 GW generational capacity. It is slated to kick off commercial operations by 4Q 2025.

There is already an offtake agreement in place: In December, a joint venture between Saudi renewable energy developer Acwa Power and Badeel signed a 35-year power purchase agreement with the Saudi Power Procurement Company (SPPC) for Al Shuaibah 2.

Acwa and Badeel have a lot more in the pipeline: In May, Badeel and Acwa Power signed power purchase agreements with SPPC to develop and operate three solar energy projects worth 4.5 GW at a price tag of SAR 12.2 bn (c. USD 3.25 bn). Both companies will jointly own the 2 GW Ar Rass 2 solar farm, the 1.12 GW Saad 2 PV plant, and the 1.42 Al Kahfah solar project.