Saudi Acwa Power targets 120 GW power capacity in 10 years

Saudi arabia

Acwa Power, based in Saudi Arabia, aims to generate 120 gigawatts of electricity over the course of the next ten years with a presence in 20 nations. To finance its expansion goals, Acwa Power intends to issue a bond by the end of this year or early in the following year.

The company, which is listed in Riyadh, operates in 13 countries and has a total power generation capacity of around 43 gigawatts, with 37% of that capacity coming from renewable sources. According to the company’s chief financial officer, it hopes to reach a total renewable capacity of 70% within the next ten years, with the remaining percentage coming from its gas portfolio.

“We are considering a pipeline of 20 countries over the next 10 years in order to expand our portfolio. At the Water, Energy, Technology and Environment Exhibition in Dubai on Tuesday, Abdulhameed Al Muhaidib said that the new nations would primarily be in Africa and Asia, particularly South-East Asia and Central Asia.”

This year, Acwa Power unveiled a number of new projects as it expanded its energy portfolio internationally. The corporation finalised agreements worth $12 billion last month to build new energy projects in Uzbekistan, including the largest onshore wind farm ever built, with a 1.5 gigawatt capacity, in the country’s Karakalpakstan area.

Read : Crown Prince Mohammed bin Salman becomes Saudi’s Prime Minister

Additionally, it was chosen as the preferred bidder to build two solar power plants in Indonesia, the largest economy in South-East Asia, and it is leading a consortium to build a $1.5 billion 1.1 gigawatt wind project in Egypt.

We usually take our time researching a market before entering it; our goal is to increase capacity in each nation by at least five to six gigawatts. Otherwise, it does not make sense from a business standpoint for us,” said Mr. Al Muhaidib.

Acwa Power is trying to raise more money this year to fund its pipeline of projects after raising 2.8 billion Saudi riyals ($746 million) through the issuing of a sukuk the previous year.

“Last year, the [sukuk] programme was in its first tranche, and we did not make any announcements regarding the launch of the second tranche. The second tranche of the same programme, which is what we are anticipating today, “may be [brought to the market] by the end of this year or the start of next year,” he stated.

According to him, it will raise “more or less” the same amount as tranche one. Acwa Power and France’s Natixis Corporate and Investment Banking struck a preliminary deal last year to seek funding of up to $2 billion for their respective renewable energy projects.

The utility developer’s net profit for the previous year was 743.9 million riyals, down 17.5% from 2020, mostly as a result of the recognition of some share-based payments related to its initial public offering and an impairment loss.

However, thanks to the start of new projects, Acwa Power’s second-quarter earnings increased by 27% to around 389.9 million riyals. It anticipates stronger financial results this year compared to last year as it keeps expanding its energy portfolio.

Acwa Power is optimistic about hydrogen given the rising global need for clean fuel brought on by the energy shift. In collaboration with US-based Air Products and Neom, the company is building a $5 billion green hydrogen facility in the Saudi Arabian city of Neom.

Additionally, it is collaborating with Air Products and Oman’s OQ Energy Company to build a multi-billion dollar green hydrogen-based ammonia production facility in Oman’s Salalah Free Zone.



Roshan Amiri is an advocate for the truth. He believes that it's important to speak out and fight for what's right, no matter what the cost. Amiri has dedicated his life to fighting for social justice and creating a better future for all.

Leave a Reply

Your email address will not be published. Required fields are marked *