PPA agreement signed with SPPC, the principal buyer, for a 25-year period
ACWA Power and the Saudi Power Procurement Company (SPPC), the principal buyer, today signed a power purchase agreement (PPA) to develop the 700 MW Ar Rass solar photovoltaic independent power plant (IPP) in Saudi Arabia’s central Al Qassim province.
The agreement was signed in the presence of HRH Prince Abdulaziz Bin Salman Bin Abdulaziz Al Saud, Minister of Energy of Saudi Arabia.
Under the terms of the agreement, ACWA Power will sell energy produced by the project to SPPC for a period of 25 years. Valued at US$450 million (SAR 1.7billion),
Ar Rass is the largest PV project that has been tendered as part of Saudi Arabia’s National Renewable Energy Programme (NREP) to date, for which ACWA Power has been earmarked to deliver 70% of the total 58.7 GW target.
ACWA Power will hold a (40.1%) stake in the facility, along with (20%) by the Water and Electricity Holding Company (Badeel), a wholly owned PIF Portfolio Company, and (39.9%) will be owned by the State Power Investment Corporation from China. When fully functional, the project will produce energy to power around 132,000 homes in central Saudi Arabia.
“As Saudi Arabia’s leadership ramps up its multi- gigawatt plans for diversifying its energy mix to include renewable energy, solar power is a key component in unlocking positive economic, environmental and social outcomes, whether it is for consumer use, or in mega-projects,” stated Mohammad Abunayyan, Chairman, ACWA Power. The Ar Rass IPP is expected to reach financial close in Q4-2022.