ACWA Power has signed financing agreements for three major solar photovoltaic projects worth SAR 9.7 billion ($2.6 billion), the company disclosed on Sunday to the Saudi stock market, Tadawul.
The financing was participated in by a consortium of local, regional and international banks, including Banque Saudi Fransi, Emirates NBD, First Abu Dhabi Bank, HSBC, Mizuho Bank, Riyad Bank, National Commercial Bank and Standard Chartered Bank.
The three projects targeted by this financing are located in the Makkah Al-Mukarramah region and the Qassim region, with a production capacity of 2,000 megawatts, 2,000 megawatts, and 1,500 megawatts, respectively, according to the company’s disclosure.
The financing agreements were signed by the project companies represented by Bareeq Renewable Energy Company, Mowaih Renewable Energy Company, Nabaa Renewable Energy Company owned by ACWA Power and Badeel (one of the companies owned by the Public Investment Fund), and Saudi Aramco Energy Company.
ACWA Power's stake in each of the three project companies is 35.1%.
ACWA Power has appointed Citigroup Saudi Arabia, NCB Capital and JP Morgan as financial advisors to manage the subscription to increase its capital by approximately 7.125 billion riyals through a rights issue, according to a disclosure by the company on the Saudi Stock Exchange today, Sunday.
The company said the capital increase will support its new growth strategy which aims to triple its business by 2030.
The company also announced today the signing of financing agreements for three major solar photovoltaic energy production projects worth SAR 9.7 billion ($2.6 billion). The three projects targeted by this financing are located in the Makkah and Qassim regions and have a production capacity of 2,000 megawatts, 2,000 megawatts and 1,500 megawatts respectively, according to the company’s disclosure.
Saudi Arabia's ACWA Power has signed an agreement to sell power generated from a project in Indonesia, as part of its plan to expand in the Asian country through strategic investments.
The company said in a statement that the agreement includes the sale of power from the Sagoleng floating solar photovoltaic project in Indonesia to PT Perusal Listrik Negara-Persero (PLN), Indonesia's only state-owned electricity company, according to a press release on Wednesday.
In early November 2022, ACWA Power announced its entry into the Indonesian market for the first time by developing two floating solar photovoltaic projects, after agreeing with the state electricity company, namely Sagoleng with a production capacity of 60 megawatts, and Singkarak with a production capacity of 50 megawatts, according to a previous press release.
The company, listed on the Saudi Stock Exchange, estimated the investment value of both projects at about $105 million at the time, with its share in the two projects amounting to 49%, while the remaining share is owned by Indonesia Power, a subsidiary of BLN.
Indonesia's only state-owned electricity company aims to produce 23% of the country's energy needs from renewable energy by 2025, according to the National Energy Master Plan adopted by the government in Jakarta, according to the same statement.
BLN, the first partner in these projects, controls approximately 69% of Indonesia’s power generation capacity and is the sole buyer of electricity produced by the country’s independent power plants, including electricity generated from renewable energy sources. As of the end of 2021, the company controls more than 64.5 GW of generation capacity in Indonesia, according to the previous statement published on ACWA Power’s website.
The Sagoleng project paves the way to tap into the country’s growth potential, said Thomas Brostrom, ACWA Power’s chief business development and investment officer, in the statement on Wednesday. The company says it is expanding its presence in Indonesia through strategic investments that contribute to economic growth and enable a sustainable future.
The Saudi company said it is developing the Garuda Hydrogen Hijau project, which it describes as the largest green hydrogen facility in Indonesia, also in collaboration with BLN.
ACWA Power announced the signing of an agreement regarding the green hydrogen project in Indonesia with investments exceeding one billion dollars, on the sidelines of the COP28 climate conference in Dubai at the end of 2023.
She explained at the time that the commercial operation of the project is expected to begin by 2026, with a production capacity of up to 600 megawatts of solar and wind energy, and 150,000 tons of green ammonia annually.
