At the ninth edition of the Future Investment Initiative ( FII9 ) held recently in Riyadh, Acwa Power signed a series of agreements with a combined value of US$10 billion, covering multiple regions, including the Gulf Cooperation Council ( GCC ), China, Central Asia, and Africa.

The agreements encompass financing partnerships, renewable energy and storage projects, as well as collaboration in research and technology development.

Acwa Power, in partnership with Water and Electricity Holding Company ( Badeel ) – a wholly owned subsidiary of Public Investment Fund ( PIF ) – and Saudi Aramco, signed financing agreements representing a total investment of US$6 billion.

The projects are being developed under the National Renewable Energy Programme ( NREP ) led by Saudi Arabia’s Ministry of Energy, and form part of PIF’s commitment to develop 70% of the national renewable energy targets by 2030. They will supply clean electricity to the Saudi Power Procurement Company ( SPPC ) as the procurer and offtaker for the development of the projects, under long-term power purchase agreements ( PPAs ).

Financing for the portfolio was provided by Ajman Bank, Al Masraf, Alinma Bank, Arab National Bank, Bank Al Bilad, China Construction Bank, China Minsheng Bank, Emirates NBD, Eurobank, First Abu Dhabi Bank, HSBC, Industrial and Commercial Bank of China, KfW Development Bank, Mizuho Financial Group, National Bank of Bahrain,  Piraeus Bank, Saudi Awwal Bank, Saudi Investment Bank, Saudi National Bank, Standard Chartered Bank, and Sumitomo Mitsui Trust Bank.

Equity bridge facility

For Uzbekistan, Acwa Power signed US$100 million worth of green equity bridge financing agreements for the Kungrad 123 Wind and Battery Energy Storage Project in the Republic of Karakalpakstan.

This financing was secured from Sumitomo Mitsui Banking Corporation ( SMBC ) on a Shariah-compliant basis, and is Acwa Power’s maiden equity bridge facility with SMBC for a project outside of the GCC. The project, developed under a “build, own, operate and transfer” ( BOOT ) structure, comprises 1,500 megawatts of wind capacity and 300-plus megawatt-hours each of battery energy storage system ( BESS ) capacity, spread across three co-located wind farms in the Kungrad region.

It also includes 1,444 kilometres of 500-kilovolt transmission lines, three new switching stations, and upgrades to two existing ones. Once operational, Kungrad 123 will supply clean energy to 1.6 million households.

Acwa Power also signed US$1.8 billion worth of project financing agreements with a consortium of leading international banks and equity partners for the Samarkand Solar and Battery Energy Storage Project in Uzbekistan, the country’s largest solar project to date.

Japanese partners

The agreements were signed alongside project partners Sumitomo Corporation ( 20.2% ), Chubu Electric Power ( 14.4% ), and Shikoku Electric Power ( 14.4% ).

The consortium of lenders includes Japan Bank for International Cooperation ( JBIC ), Asian Development Bank ( ADB ), European Bank for Reconstruction and Development ( EBRD ), Islamic Development Bank ( IsDB ), and private financial institutions. The portion financed by private financial institutions is covered by Overseas United Loan Insurance provided by Nippon Export and Investment Insurance ( Nexi ).

The project, located in Samarkand and Bukhara regions, is being developed under a 25-year PPA with Uzbekistan’s state-owned National Electric Grid of Uzbekistan ( Negu ), and will comprise two 500MW solar photovoltaic plants and two BESS unit with a combined capacity of 1,336 MWh. The project also includes over 500km of 220kV and 500kV transmission lines and two new substations to enhance grid stability and connectivity.

Acwa Power also entered into a financing partnership with SMBC to establish a US$100-million export bridge loan ( EBL ) facility. The facility will support the 1.5-gigawatt Kungrad Wind Power Project in Uzbekistan.

African portfolio

For Africa, Acwa Power deepened its long-standing partnership with the International Finance Corporation ( IFC ) through two strategic agreements aimed at accelerating clean energy and water infrastructure deployment on the continent. The first framework agreement, valued at up to US$1 billion, will provide project and corporate financing as well as capacity building and advisory support for Acwa Power’s growing portfolio across Africa. 

A second non-binding framework agreement between Acwa Power and IFC will explore the establishment of an equity investment platform to channel private capital into late-stage renewable energy independent power producer ( IPP ), small-scale IPP, and seawater desalination projects, aiming to provide more flexibility and faster accessibility to develop smaller-scale projects, particularly in Sub-Saharan Africa. The initiatives aim to accelerate private-sector participation and sustainable infrastructure delivery across the region.

Acwa Power also signed three framework agreements with leading Chinese wind technology companies, Goldwind Science & Technology, Envision Energy, and Mingyang Smart Energy, to accelerate innovation, local manufacturing, and technology transfer across Saudi Arabia, Uzbekistan, China, and other key markets. The partnerships will focus on boosting wind turbine efficiency, promoting local content in line with Saudi Arabia’s Vision 2030, and exploring joint project development in emerging economies.