Multi-gigawatt wind turbine order up for grabs as ACWA-led group kicks off $8.3bn spending spree

Saudi Arabia’s ACWA Power leads a consortium ready to invest about $8.3bn in 3GW of wind farms and 12GW of solar arrays across the desert kingdom.

The utility, together with Saudi Aramco Power Company (SAPCO), a unit of state-oil giant Aramco, and water and electricity holding company Badeel, a unit of the country’s public investment fund (PIF), has signed power purchase agreements (PPAs) with the Saudi Power Procurement Company (SPPC) as off-taker of the electricity to be generated by two gigascale wind farms and five large-scale PV arrays.

ACWA didn’t disclose which wind turbine manufacturer it plans to choose for the 2GW Starah and the 1GW Shaqra onshore wind projects, both located in Riyadh province.

“This landmark agreement represents a significant milestone in Saudi Arabia's strategic vision for a more resilient and more sustainable energy landscape, underscoring the nation’s steadfast commitment to achieving its ambitious renewable energy targets,” said Marco Arcelli, Chief Executive Officer of ACWA Power.

Financial closes for both the wind and the solar projects are expected by the third quarter of 2025, which are slated to enter production in late 2027 and early 2028.

Saudi Arabia targets to meet half of its electricity needs from renewables by 2030, a very ambitious goal as the country only had some 6.2GW of solar and 0.8GW of wind grid-connected at the end of last year.

Saudi Arabia’s National Renewable Energy Programme (NREP) is supervised by the energy ministry, with PIF playing a key role in the development of the ambitious renewable energy goal.

Aramco is also involved as the giant oil company is trying to reduce greenhouse gas emissions and free up more oil and gas for export, while diversifying the still largely fossil-extraction-based economy.

“We are delighted to expand our footprint in the renewables business through our subsidiary, SAPCO,” said Waleed Al Saif, Aramco’s SVP of New Energies.

“In partnership with ACWA Power and Badeel, we are helping build Saudi Arabia’s renewable energy infrastructure. In doing so, we are laying the foundations for a more sustainable power network.

“Through such investments, we aim to unlock additional value from Saudi Arabia’s abundant natural resources and grow Aramco’s New Energies portfolio.”

ACWA Power's solar and wind portfolio in Saudi Arabia with the new additions now includes 21 projects, representing more than 34GW of combined renewable capacity. The company’s total renewable capacity portfolio reaches 51.9GW.