Prime Highlights:

• ACWA Power has secured $3.4 billion financing to build two major gas-fired power plants in Saudi Arabia, adding 3.6 gigawatts to the national grid.
• The projects support Saudi Arabia’s Vision 2030, combining conventional energy growth with renewable and green energy initiatives.

Key Facts:

• The two plants, Rumah-1 in Riyadh and Al-Nairiyah-1 in the Eastern Province, will each generate 1,800 megawatts, with ACWA Power holding a 35% stake.
• The financing deal, completed on August 21, involves a 28-year debt package arranged by a consortium of regional and international lenders.

Key Background:

ACWA Power, a major utility provider in Saudi Arabia, has received funding of SR12.8 ($3.4) billion to construct two giant gas-powered plants as a means to increase the energy supply in the country, where power demand is escalating.

The Rumah-1 plant in Riyadh and the Al-Nairiyah-1 plant in the Eastern Province will contribute a total of 3.6 gigawatts to Saudi Arabia’s grid, with each unit generating 1,800 megawatts. Saudi Electricity Co. holds an equal 35 percent, and Korea Electric Power Corp. owns the remaining 30 percent, as disclosed in a Tadawul filing.

The agreement includes a 28-year debt package organized by a consortium of regional and international lenders.

ACWA Power is only responsible for a short-term equity loan, the first earnings from the plants, backup funds, and a reserve account. The move by the company speaks to its increasing involvement in evenly striking a balance between conventional power generation and renewable energy generation to meet the Vision 2030 targets.

In recent months, ACWA Power has been increasing its portfolio of domestic and international projects. The company has added about 2.8 gigawatts of solar energy in Saudi Arabia. It is also leading an $8.4 billion clean hydrogen venture in Neom, designed to produce about 600 tonnes of hydrogen and 1.2 million tonnes of green ammonia annually.

Globally, ACWA Power has pursued acquisitions and partnerships, including the purchase of French utility Engie’s $693 million portfolio in Kuwait and Bahrain earlier this year. In July, the company entered into deals valued at $8.3 billion to advance seven renewable projects in solar and wind, with a combined capacity of 15 gigawatts.

On Sunday, ACWA Power’s stock price climbed by 2.21 percent, reaching SR231.20, signaling strong market confidence in its growth strategy.

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