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ACWA Power led group reach closure for $2.37 bln fund to build Saudi solar projects


A consortium of companies led by ACWA Power announced on Sunday the successful financial close of Al Shuaibah 1 and Al Shuaibah 2 solar PV projects which will generate an aggregate capacity over 2.6GW of clean electricity for Saudi Arabia.
ACWA Power, a Saudi-listed company and a leader in the energy transition, was joined by the Water and Electricity Holding Company (Badeel), wholly owned by Public Investment Fund (PIF), and Saudi Aramco Power Company (SAPCO), a wholly owned subsidiary of Aramco, for the two projects.
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The financial close for the projects is a key achievement in the National Renewable Energy Program (NREP) which is led and supervised by the Ministry of Energy and is a key achievement towards PIF’s commitment to develop 70 percent of Saudi Arabia’s Renewable Energy Target Capacity by 2030.
Saudi Power Procurement Company (SPPC) is the procurer and the off-taker for the projects, while the new projects will be jointly owned by Badeel (34.99 percent), ACWA Power (35.01 percent), and SAPCO (30 percent).
The $1.63 billion senior debt financing for this plant includes a $450 million, Saudi Riyal denominated loan from the National Development Fund on behalf of the National Infrastructure Fund (under establishment) as well as $1.18 billion, US-dollar denominated commercial facility from a consortium of local, regional, and international banks (Bank Saudi Fransi, First Abu Dhabi Bank, Mizuho Bank, Riyad Bank, Saudi National Bank, Standard Chartered Bank, and Saudi Investment Bank).

Aramco’s investment in Al Shuaibah 1 and Al Shuaibah 2 Solar PV Projects through SAPCO is its second participation in the National Renewable Energy Program, aligning with the company’s objectives of achieving net-zero of emissions by 2050.

Marco Arcelli, CEO of ACWA Power. (Supplied)

Marco Arcelli, CEO of ACWA Power. (Supplied)

PIF, through Water and Electricity Holding Company (Badeel), in partnership with ACWA Power is the lead developer is executing a total of five NREP projects, with a cumulative capacity of 8GW and over $6 billion of investment from PIF and its partners. These projects — Sudair, Al Shuaibah 2, Ar Rass 2, Al Kahfah, Saad 2 — are aiming to enable and support the local private sector through requirements for significant local content contribution and the procurement of equipment, supplies, and services through local supply chains.
Situated in Al Shuaibah in the Makkah Province, the Al Shuaibah PV 1 and Al Shuaibah PV 2 will have a capacity of 600 MW and 2,031 MW respectively, and are capable of powering approximately 450,000 households. The total investment in the plant amounts to $2.37 billion, and commercial operations will commence in 2025.
Commenting on the financial close, Marco Arcelli, CEO of ACWA Power, said: “Securing financing for this groundbreaking project marks a significant step towards achieving Saudi Arabia’s clean energy goals, in alignment with the National Renewable Energy Program, which aims to generate 50 percent of electricity from renewable sources by 2030.”
"We are truly proud of this milestone and look forward to working closely with our key partners PIF, Aramco, and other contributors to successfully realize a sustainable future,” he added.
From his side, Husam Al-Ghailani, CEO of Badeel, said: “Reaching the financial close for Al Shuaibah 1 and Al Shuaibah 2 Solar PV Projects marks a significant milestone for Badeel,, and gives us the drive to continue our efforts to support the continuing growth of renewable energy in the Kingdom and contribute towards PIF’s commitment to develop 70 percent of Saudi Arabia’s renewable energy by 2030, which will contribute to unlocking the capabilities of promising non-oil sectors to enhance Saudi Arabia’s efforts in diversifying revenue sources and to enhance its leading role in the renewable energy sector locally and globally.”
Mohammed Al Qahtani, President of Downstream at Aramco, said: “Our participation in the Al Shuaibah PV 1 and Al Shuaibah PV 2 projects aligns with our efforts to reduce Aramco’s carbon footprint and create a more sustainable future. While oil and gas will play a major role to meet the energy demand of today and tomorrow, renewables will increasingly play a part in the energy transition to address the climate change challenges. The projects mark a significant milestone to support Aramco in achieving its decarbonization targets.”
Eng. Esmail bin Mohammad Alsallom, Chief Executive Officer of National Infrastructure Fund, commented: “NIF is proud to have played a key role in the landmark Al Shuaibah Projects, which extend NIF’s commitment to the Kingdom’s ambitious energy transition agenda. NIF has again been able to tailor its offering to enable large-scale financing from leading local and international financiers, which is central to our mandate to accelerate the delivery of critical infrastructure.”
With the addition of these two projects, ACWA Power’s solar portfolio in Saudi Arabia now exceeds 12GW of combined PV capacity. This includes the recent inclusion of three new projects with PIF subsidiary Badeel: the 2GW Ar Rass 2, 1.125GW Saad 2, and 1.4GW Al Kahfah solar plants. Overall, ACWA Power's global portfolio of renewable energy capacity stands at 23.4GW.

Read more:

Saudi’s PIF-owned Badeel, ACWA Power to develop MENA’s largest solar energy plant
Work starts on Saudi’s ACWA-led inaugural solar project
Saudi energy prowess here to stay as Kingdom turns attention to solar

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Abu Dhabi Overtakes Oslo for Sovereign Wealth Fund Capital in Global SWF’s First City Ranking

Today, industry specialist Global SWF published a special report announcing a new global ranking of cities according to the capital managed by their Sovereign Wealth Funds (SWFs). The findings show that Abu Dhabi is the leading city that manages the most SWF capital globally, thanks to the US$ 1.7 trillion in assets managed by its various SWFs headquartered in the capital of the UAE. These include the Abu Dhabi Investment Authority (ADIA), Mubadala Investment Company (MIC), Abu Dhabi Developmental
Holding Company (ADQ), and the Emirates Investment Authority (EIA). Abu Dhabi now ranks slightly above Oslo, home to the world’s largest SWF, the Government Pension Fund (GPF), which manages over US$ 1.6 trillion in assets. Abu Dhabi and Oslo are followed by Beijing (headquarters of the China Investment Corporation), Singapore (with GIC Private and Temasek Holdings), Riyadh (home to the
Public Investment Fund), and Hong Kong (where China’s second SWF, SAFE
Investment Corporation, operates from). Together, these six cities represent two thirds
of the capital managed by SWFs globally, i.e., US$ 12.5 trillion as of October 1, 2024.
For the past few decades, Abu Dhabi has grown an impressive portfolio of institutional
investors, which are among the world’s largest and most active dealmakers. In addition
to its SWFs, the emirate is home to several other asset owners, including central banks,
pension funds, and family offices linked to member of the Royal Family. Altogether, Abu
Dhabi’s public capital is estimated at US$ 2.3 trillion and is projected to reach US$ 3.4
trillion by 2030, according to Global SWF estimates.
Abu Dhabi, often referred to as the “Capital of Capital,” also leads when it comes to
human capital i.e., the number of personnel employed by SWFs of that jurisdiction, with
3,107 staff working for funds based in the city.
Diego López, Founder and Managing Director of Global SWF, said: “The world ranking
confirms the concentration of Sovereign Wealth Funds in a select number of cities,
underscoring the significance of these financial hubs on the global stage. This report
offers valuable insights into the landscape of SWF-managed capital and shows how it is
shifting and expanding in certain cities in the world.”

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AM Best Briefing in Dubai to Explore State of MENA Insurance Markets; Panel to Feature CEOs From Leading UAE Insurance Companies

AM Best will host a briefing focused on the insurance markets of the Middle East and North Africa (MENA) on 20 November 2024, at Kempinski Central Avenue in Dubai.
At this annual regional market event, senior AM Best analysts and leading executives
from the (re)insurance industry will discuss recent developments in the MENA region’s
markets and anticipate their implications in the short-to-medium term. Included in the
programme will be a panel of chief executive officers at key insurance companies in the
United Arab Emirates: Abdellatif Abuqurah of Dubai Insurance; Jason Light of Emirates
Insurance; Charalampos Mylonas (Haris) of Abu Dhabi National Insurance Company
(ADNIC); and Dr. Ali Abdul Zahra of National General Insurance (NGI).
Shivash Bhagaloo, managing partner of Lux Actuaries & Consultants, will his present
his observations in an additional session regarding implementation of IFRS 17 in the
region. The event also will highlight the state of the global and MENA region
reinsurance sectors, as well as a talk on insurance ramifications stemming from the
major United Arab Emirates floods of April 2024. The programme will be followed by a
networking lunch.
Registration for the market briefing, which will take place in the Diamond Ballroom at the
Kempinski hotel, begins at 9:00 a.m. GST with introductory comments at 9:30 a.m.
Please visit www.ambest.com/conference/IMBMENA2024 for more information or to
register.
AM Best is a global credit rating agency, news publisher and data analytics
provider specialising in the insurance industry. Headquartered in the United
States, the company does business in over 100 countries with regional offices in
London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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Future of Automotive Mobility 2024: UAE Leads the Charge in Embracing Digital Car Purchases and Alternative Drivetrains

-UAE scores show highest percentage among the region in willingness to purchase a car
completely online
– Openness to fully autonomous cars has grown to 60% vs previous 32%.
– More than half of UAE respondents in the survey intend to move to hybrid cars during
next car purchase, while less than 15% intend to move to fully electric car.
– UAE sees strong use of new mobility services such as ride-hailing (Uber, Careem, Hala
Taxi)
– The perceived future importance of having a car is not only increasing in UAE but is
higher than any other major region globally, even China

Arthur D. Little (ADL) has released the fourth edition of its influential Future of Automotive Mobility (FOAM) report, presenting a detailed analysis of current and future trends in the automotive industry. This year’s study, with insights from over 16,000 respondents across 25 countries, includes a comprehensive focus on the United Arab Emirates (UAE). The report examines car ownership, electric vehicles,
autonomous driving, and new mobility services within the UAE.

“The UAE is at the forefront of automotive innovation and consumer readiness for new mobility
solutions,” said Alan Martinovich, Partner and Head of Automotive Practice in the Middle East
and India at Arthur D. Little. “Our findings highlight the UAE’s significant interest in
transitioning to electric vehicles, favorable attitudes towards autonomous driving technologies,
and a strong inclination towards digital transactions in car purchases. These insights are critical
for automotive manufacturers and policymakers navigating the evolving landscape of the UAE
automotive market.”
Key Findings for the UAE:
1. Car Ownership:
o Over half of UAE respondents perceive that the importance of owning a car is
increasing, with the study showing the increase higher than any other major
region, including China.
o Approximately 80% of UAE respondents expressed interest in buying new (as
opposed to used) cars, above Europe and the USA which have mature used
vehicle markets

2. Shift to Electric and Hybrid Vehicles:
o While a high number of UAE respondents currently own internal combustion
engine (ICE) vehicles, more than half intend that their next vehicle have an
alternative powertrain, with significant interest in electric and plug-in hybrid
(PHEV) options. Less than 15% plan to opt for pure battery electric vehicles
(BEVs).

3. Emerging Mobility Trends:

o Ride-hailing services are the most popular new mobility option among UAE
residents, with higher usage rates than traditional car sharing and ride sharing.
The study indicates a strong openness to switching to alternative transport modes
given the quality and service levels available today.

4. Autonomous Vehicles:
o UAE consumers are among the most open globally to adopting autonomous
vehicles, with a significant increase in favorable attitudes from 32% in previous
years to 60% this year versus approximately 30% in mature markets. Safety
concerns, both human and machine-related, remain the primary obstacles to
broader adoption.

5. Car Purchasing Behavior and Sustainability:
o The internet has become a dominant channel for UAE residents throughout the car
buying process, from finding the right vehicle to arranging test drives and closing
deals. UAE car buyers visit dealerships an average of 3.9 times before making a
purchase, higher than any other region in the world, emphasizing the need for
efficient integration of online and offline experiences.
o Upwards of 53% of respondents from the region would prefer to ‘close the deal’
and complete the purchase of their car online, which is the highest for any region
in the world.
o Sustainability is a key factor cited by UAE consumers as influencing car choice.
The UAE scored among the top half of regions, highlighting the importance of
environmental considerations.

“Our study confirms the promising market opportunities for car manufacturers (OEMs) and
distributors in the UAE” commented Philipp Seidel, Principal at Arthur D. Little and co-Author
of the Global Study. “Consumers in the Emirates show a great and increasing appetite for cars
while being among the most demanding globally when it comes to latest vehicle technologies
and a seamless purchase and service experience.”
The comprehensive report, “The Future of Automotive Mobility 2024” by Richard Parkin and
Philipp Seidel, delves into global automotive trends and their impact on various regions,
including the UAE. This study is an invaluable tool for industry stakeholders seeking to navigate
and leverage the dynamic changes driving the future of mobility.

 

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