$8.3B Consortium to Deliver 15GW of Clean Energy by 2028
In July, Saudi Arabia launched a transformative $8.3 billion investment to build 15 gigawatts (GW) of solar and wind energy capacity across four regions. Spearheaded by ACWA Power, a leading regional renewable energy developer, the consortium includes Aramco Power and the Water and Electricity Holding Co., both backed by the kingdom’s sovereign wealth fund. The initiative marks a pivotal moment in the nation’s Saudi Green Economy Steps, aiming to shift from fossil fuel dependency to sustainable energy leadership.
Riyadh, Mecca, Medina, and Aseer to Host Seven Mega Projects
The project portfolio includes five solar farms and two wind installations. Riyadh will host two solar and two wind projects, while Mecca, Medina, and Aseer will each receive one solar farm. These developments are expected to be operational by 2028, contributing significantly to the kingdom’s goal of generating 50% of its electricity from renewables by 2030.
From 4.34GW to 130GW: Saudi’s Renewable Ambition by 2030
As of the end of 2024, Saudi Arabia had 4.34GW of installed solar capacity. With this new investment, the country is accelerating toward its target of 130GW of combined solar and wind capacity by the end of the decade. This dramatic scale-up reflects the kingdom’s commitment to Saudi Green Economy Steps and its broader Vision 2030 strategy to diversify its economy and reduce carbon emissions.
Lowest Global Pricing Signals Investor Confidence
The Saudi government has described the signed agreements as among the world’s largest and the lowest globally in terms of pricing. These competitive rates are attributed to the kingdom’s efficient financing models and growing investor confidence. The deals were formalized in Riyadh, with Energy Minister Prince Abdulaziz bin Salman in attendance, underscoring the strategic importance of the initiative.
ACWA Power Expands Global Reach, Eyes China’s Renewable Market
ACWA Power, already operating in 14 countries across the Middle East, Africa, and Asia, has announced its entry into China—the world’s largest renewable energy market. CEO Marco Arcelli emphasized the strategic rationale: “We decided to enter China because it’s the biggest market in the world in renewables, by far.” This expansion aligns with the company’s ambition to scale its impact and reinforces Saudi Arabia’s role in global clean energy development.
Middle East Emerges as Fastest-Growing Renewable Region
The Middle East, though starting from a low base, is now the fastest-growing region outside China in terms of new renewable electricity capacity. Saudi Arabia’s latest move further cements its leadership in this trend, leveraging abundant sunlight and falling solar panel costs to advance its Saudi Green Economy Steps.
Also Read: Saudi Arabia’s Roadmap for Renewable Energy Transition by 2030
