Saudi Arabia is accelerating its economic transformation, expanding its green hydrogen strategy, and pursuing ambitious renewable energy targets. The Kingdom has now announced major new investments in wind and solar projects totaling 15,000 megawatts (MW) of capacity.
By 2030, Saudi Arabia aims to source 50% of its energy mix from renewables. This target was reaffirmed by Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, Saudi Arabia’s Minister of Energy, at the Saudi Smart Grid Conference in December 2023. The initiative is part of the National Renewable Energy Program (NREP), which envisions a total capacity of 130,000 MW.
Saudi Arabia Targets 12,000 MW Solar and 3,000 MW Wind Capacity
In the presence of Prince Abdulaziz, a consortium led by the state-owned energy company ACWA Power signed new power purchase agreements (PPAs) with the Saudi Power Procurement Company (SPPC).
The consortium includes ACWA Power—a leading energy transition player and global pioneer in green hydrogen and seawater desalination—Badeel (a wholly owned subsidiary of the Public Investment Fund, PIF), and Saudi Aramco Power Company (SAPCO), a subsidiary of the oil and gas giant Aramco.
The five planned solar plants, totaling 12,000 MW, are:
- Bisha (3,000 MW, Asir Province)
- Humaij (3,000 MW, Medina Province)
- Khulis (2,000 MW, Mecca Province)
- Afif 1 (2,000 MW, Riyadh Province)
- Afif 2 (2,000 MW, Riyadh Province)
The wind projects, totaling 3,000 MW, include:
- Starah (2,000 MW, Riyadh Province)
- Shaqra (1,000 MW, Riyadh Province)
The agreement is considered the world’s largest single-phase commitment to renewable energy capacity.
To date, ACWA Power has initiated projects totaling 43,213 MW. PPAs have been signed for 38,713 MW, with 10,213 MW already operational. This figure is expected to reach 12,713 MW by the end of 2025 and 20,013 MW by the end of 2026.
The new projects will be jointly developed and operated by Badeel, ACWA Power, and SAPCO. Grid connection is scheduled between late 2027 and early 2028, with financial close expected in Q3 2025.
Marco Arcelli, CEO of ACWA Power, stated: “This landmark agreement represents a significant milestone in Saudi Arabia’s strategic vision for a more resilient and more sustainable energy landscape. As the largest and most comprehensive agreement to date under the National Renewable Energy Programme (NREP), it reflects our dedication to collaborate with the Saudi Power Procurement Company (SPPC), PIF and Aramco as we collectively advance this step shift towards a more sustainable energy future.”
Renewables as a Catalyst for Structural Change in Saudi Arabia
Power generation and renewable energy are key strategic investment sectors for PIF, aimed at diversifying the economy and strengthening the private sector under Vision 2030.
Badeel, ACWA Power, and SAPCO are currently developing power plant projects with a combined capacity of 28.6 GW and investments exceeding USD 17 billion (SAR 63.75 billion). These include projects such as Haden, Muwayh, Al Khushaybi, Sudair, Shuaibah 2, Ar Rass 2, Al Kahfah, and Saad 2—all expected to contribute to local value creation and strengthen Saudi industry.
In parallel, Aramco is expanding its renewable energy portfolio to reduce emissions and enhance long-term corporate value, in line with its 2060 net-zero target.
With these new projects, ACWA Power’s domestic portfolio grows to 21 large-scale projects totaling over 34 GW, while its global renewable capacity reaches 51.9 GW.
About the National Renewable Energy Program (NREP)
The National Renewable Energy Program is a key pillar of Saudi Arabia’s Vision 2030. It supports economic diversification, promotes local value creation (e.g., solar module manufacturing), and generates new jobs in the energy sector.
The program also aims to transform the energy sector, reduce dependence on oil, and increase the share of renewables to 50% of electricity generation by 2030. The remaining energy mix will be covered by high-efficiency gas power plants.
The target renewable capacity is set at 130 GW, requiring an annual capacity addition of approximately 20 GW.
The main stakeholders in Saudi Arabia include the Public Investment Fund (PIF), which directly develops around 70% of projects, primarily through subsidiaries like Badeel. The remaining projects are tendered publicly through the Ministry of Energy.
ACWA Power is the principal developer and operator of many projects, especially in the solar, wind, and green hydrogen sectors. The Saudi Power Procurement Company (SPPC), a subsidiary of Aramco, acts as the central counterparty for all PPAs.
