These three independent power projects, which will be built at a cost of SR12.2 billion ($3.25 billion), intend to produce a combined capacity of 4.55 gigawatts, powering approximately 750,000 households.

The financial close for these projects is expected by the third quarter of 2023.

The projects Ar Rass 2, Saad 2 and Al Kahfah have a capacity of approximately 2,000 megawatts of alternating current, 1,125 MWac, and 1,425 MWac of renewable power, respectively.

“Today’s signing of three power purchase agreements marks a significant milestone for ACWA Power, representing the largest single transaction for solar projects in our company’s history. This achievement illustrates our firm commitment to a sustainable future for Saudi Arabia and beyond,” ACWA Power CEO Marco Arcelli said.

The solar initiatives fall under the umbrella of the National Renewable Energy Program, a scheme overseen by the Ministry of Energy. The PIF has been assigned to establish 70 percent of NREP’s target capacity.

Aligned with the Kingdom’s Vision 2030 initiative, the Ministry of Energy aims to displace liquid fuels by harnessing renewable energy sources. The ministry aims to increase the share of renewables by 50 percent of the energy mix by 2030.

The wealth fund is currently developing a total of five projects, with a cumulative capacity of 8 GW and over $6 billion of investment from the fund and its partners.

“The three new solar projects are part of PIF’s commitment to developing 70 percent of Saudi Arabia’s renewable energy by 2030, in line with the National Renewable Energy Program,” Mohammed Al-Balaihed, head of energy and utilities at PIF, said.

“Renewable energy is one of PIF’s priority sectors, with a focus on unlocking the capabilities of promising sectors and enabling the private sector to enhance Saudi Arabia’s efforts in diversifying the economy,” Al-Balaihed added.