Saudi Arabia’s largest solar project receives SAR 8.3 billion
29/08/23
Saudi Arabia`s National Development Fund (NDF) recently announced its participation in financing the largest renewable energy project in the country.
The Shuaiba project is a partnership between Saudi Aramco, Badil Company and ACWA Power to establish the largest solar photovoltaic (PV) power plant in the kingdom. PV is the process of converting light into electricity using semiconductable materials. The plant will have a total value of SAR 8.3 billion (USD 2.2 billion) and is located in the Makkah Al-Mukarramah region. It will also be one of the largest renewable energy developments worldwide.
Specifically, the NDF will provide a SAR 6.1 billion (USD 1.63 billion) loan, while the Saudi National Infrastructure Fund has extended financing of SAR 1.7 billion (USD 453.3 million). In addition, several local and international banks participated in the financing deal.
Most importantly, the financing of this project falls in line with the Saudi Green Initiative and will also contribute to achieving the goals of the Saudi Vision 2030 in diversifying the energy mix and its sources. In turn, this contributes to the acceleration and implementation of the Kingdom`s long term strategic infrastructure projects.
The power plant is scheduled to commence commercial activities in 2025. Specifically, the facility is expected to generate a total capacity of over 2.6 gigawatts of clean energy, capable of supplying about 450,000 households with electricity.
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