Saudi Arabia signs 5 solar PPAs totaling 12 GW

Saudi Arabia has inked five solar power purchase agreements (PPAs) with a developer consortia led by ACWA Power covering 12 GW of new capacity. Alongside two wind PPAs totaling 3 GW, the seven projects have been billed as the largest renewable energy capacity signed for in a single phase globally.

July 15, 2025 Patrick Jowett

Image: Aboodi Vesakaran/Unsplash

In Saudi Arabia, five solar power purchase agreements (PPAs) have been signed for a total capacity of 12 GW.

The PPAs were signed between the Saudi Power Procurement Company and a consortium led by ACWA Power acting as the main developer, in partnership with the Water and Electricity Holding Company (Badeel) and Aramco Power.

The solar projects include the 3 GW Bisha project in the Aseer region of southern Saudi Arabia, which has an agreed levelized cost of electricity (LCOE) of SAR 0.0484 ($0.0129)/kWh.

The PPAs also cover the 3 GW Humaji project in the western Madinah region, with a LCOE of SAR 0.049/kWh, and the 2 GW Khulis project in the western Makkah region with a LCOE of SAR 0.051/kWh.

The five solar PPAs are rounded off by two 2 GW projects in the Riyadh region, Afif 1 and Afif 2, each with an agreed LCOE of SAR 0.047/kWh.

A further two PPAs, covering two wind energy projects with a combined capacity of 3 GW, were also signed. The seven agreements represent the largest capacity globally signed for renewable energy projects in a single phase, a statement from the Saudi Power Procurement Company says.

Together, the seven projects have a total investment of SAR 31 billion ($8.3 billion) under the country’s National Renewable Energy Program. Marco Arcelli, Chief Executive Officer of ACWA Power, commented that the agreements are the largest and most comprehensive under the program to date.

Scheduled to be operational across the second half of 2027 and the first half of 2028, the financial close of each of the seven projects is expected by the third quarter of this year.

The Saudi Power Procurement Company is a subsidiary of the Saudi Electricity Company and is responsible for procuring, selling and trading energy within Saudi Arabia. Its work includes preparing feasibility studies and tendering electricity generation projects alongside signing PPAs with developer consortia.

According to data available on its website, the company has launched over 43 GW of renewable electricity generation projects since its inception. There are PPAs in place for over 38 GW of the capacity, with over 10 GW already connected to the grid.

Capacity connected to the grid is expected to reach 12.7 GW by the end of 2025 and surpass 20 GW by the end of next year.

Saudi Arabia’s cumulative solar capacity surpassed 4.2 GW by the end of last year, according to figures from the International Renewable Energy Agency (IRENA).

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