Saudi Arabia's Acwa Power has secured clean energy deals worth $10 billion as the utility continues to expand its renewables portfolio.
The agreements, which involve partnerships, storage, research and technology, will be implemented in the Gulf, Africa, Central Asia and China, the Public Investment Fund-backed Acwa Power said on the sidelines of the Future Investment Initiative conference in Riyadh on Wednesday.
The deals follow Saudi Power Procurement Company awarding renewable energy contracts worth more than 9 billion Saudi riyals ($2.4 billion) on Tuesday.
The biggest deal was between Acwa Power, Badeel and oil giant Saudi Aramco for a $6 billion project to develop 70 per cent of Saudi Arabia's renewable energy targets by 2030. Badeel, formally Water and Electricity Holding Company, is also backed by the PIF.
The development, which aims to supply clean electricity to Saudi Power Procurement Company, was financed by First Abu Dhabi Bank, Dubai's Emirates NBD, Saudi National Bank and Ajman Bank, among others.
“The new agreements … allow the company to accelerate innovation, optimise operations and deliver transformative solutions that address global sustainability challenges,” said founder and chairman of Acwa Power Mohammad Abunayyan.
Riyadh-based Acwa Power is one of the largest renewable energy developers in the Middle East. It has operations in 15 countries across the Middle East, Africa, and Central and South-east Asia.
It is an investor in and operator of 109 power generating and water desalination projects in operation, construction and advanced development with an overall portfolio of about $117 billion.
As part of its latest deals, Acwa Power signed agreements for projects in Uzbekistan. They include a $1.8 billion partnership with Japanese companies Sumitomo, Chubu Electric Power and Shikoku Electric Power to develop the Samarkand solar and battery energy storage project, the country’s largest solar project.
Acwa Power has already signed an agreement to develop two solar plants in the Central Asian nation, with a total generation capacity of 1.4 gigawatts.
The company also agreed to a $100 million financing deal for the Kungrad 123 wind and battery energy storage plant, and the commercial commissioning of the 100-megawatt Karatau wind project, both in the country's north-western region of Karakalpakstan.
Acwa Power signed another $100 million bridge loan with Sumitomo Mitsui Banking to back the 1.5-gigawatt Kungrad wind power project, and named Larsen & Toubro as a contractor for the 300-megawatt Bash 2 wind plant in Bukhara.
The utility also signed a $1 billion deal with the International Finance Corporation to help the development of clean energy and water infrastructure in Africa. A second deal with IFC will explore the establishment of an equity investment platform to attract private capital into renewable energy projects.
Acwa Power also agreed with the Opec Fund for International Development to extend its financing support for the region, in addition to signing a preliminary agreement with London oil and gas firm Chariot to co-develop a utility-scale energy platform for South African countries.
The utility also signed three agreements with China's Goldwind Science and Technology, Envision Energy and Mingyang Smart Energy for wind energy co-operation across Saudi Arabia, Uzbekistan, China and other key markets.
