Saudi Arabia's International Hydropower Projects Company, or ACWA Power, said today that it has signed a power purchase agreement (PPA) for a 700-megawatt solar photovoltaic power plant to be built in central Saudi Arabia. Under the power purchase agreement, the Saudi Power Procurement Company (SPPC) will power off the Ar Rass Solar Park for 25 years. Located in Qasim province, the independent power plant will be able to provide green electricity to around 132,000 households in central Saudi Arabia. It will be connected to the grid in the fourth quarter of 2024.

The project is expected to close financially in the last quarter of the year, with an investment of $450 million (€413.03 million). ACWA Power is the largest investor in Ar Rass with a 40.1% stake, while the State Power Investment Corporation of China holds a 39.9% stake. The remaining 20% is held by Hydro Holdings (Badeel).

During the signing of the power purchase agreement, Saudi Arabian Energy Minister Abdul Aziz bin Salman bin Abdul Aziz Al Saud said several renewable energy projects would be launched, in To generate about 15GW of green electricity between 2022 and 2023, as part of the Kingdom's efforts to diversify its energy mix.

ACWA Power already operates the 300-megawatt Sakah solar power plant in Saudi Arabia and is working with Saudi Aramco and Badeel on the 1,500-megawatt Sudar solar park. (1 USD = 0.918 EUR)