The Public Investment Fund (PIF), Saudi Arabia announced in a statement regarding the signing a power purchase agreement (PPA) of Shuaibah 2 Solar PV Plant, with the Saudi Power Procurement Company (SPPC).
The Project location is in Shuaibah, Western region of Saudi Arabia.
The project will be jointly owned by Badeel (a PIF Company) and ACWA Power. Each company will hold a 50% equity stake through the establishment of “Shuaibah Two Electrical Energy Company”, a joint company dedicated to the development of the project.
The projects investment value is approximately $1.75 Billion.
The project has recorded the cost for Solar PV electricity production of USD 1.792 cents/kwh.
This is the largest facility of its kind in the Middle East to date. The project is expected to achieve commercial operation by Q4 2025.
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.
The project marks an important milestone for NREP that was initiated by MoE and aims to develop 70% of the nation’s renewable energy through PIF by 2030.
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. (read more)
