RIYADH: ACWA Power, a prominent Saudi energy company, has successfully brought its Al-Shuaibah 1 Solar Photovoltaic Project to full commercial operation. This 600-megawatt renewable energy initiative marks a significant milestone for the company.
On November 12, ACWA Power received official confirmation from the project company that the Saudi Power Procurement Co. has issued the commercial operation certificate for the entire project capacity, paving the way for full-scale production, as stated in a release from the Saudi Stock Exchange.
The Al-Shuaibah 1 Solar Project is in line with ACWA Power's commitment to supporting the Kingdom's renewable energy goals and highlights its position as a leading provider of sustainable energy solutions in the region.
ACWA Power holds a 35.01 percent stake in the project and expects the financial implications of this achievement to be reflected in its fourth-quarter financial results for 2024.
This accomplishment follows a highly successful year for ACWA Power. For the first nine months of the year, the company reported a robust 16 percent increase in profits, driven by growth in its power and water production operations. Net profit attributable to equity holders reached SR1.25 billion ($334 million), up from the same period in 2023, supported by a 12.5 percent rise in operating income, which hit SR2.36 billion.
The strong performance was largely due to strategic financial moves, including investment profits from restructuring a project and capital recycling gains, enabling ACWA Power to reinvest capital effectively for further growth.
The success of the Al-Shuaibah project underscores ACWA Power's expanding investment and development portfolio. Over the past nine months, the company has secured financial closure on seven major projects with a combined value of SR31 billion.
These projects include initiatives in Saudi Arabia, such as the Taiba and Qassim Combined Cycle Gas Turbine projects, which are expected to enhance the Kingdom's power grid stability and efficiency. Other notable projects include the Tashkent Solar PV project in Uzbekistan and the Hassyan Seawater Reverse Osmosis plant in the UAE.
ACWA Power has also been actively working internationally, strengthening its global presence and expanding its investment footprint. At the Future Investment Initiative in Riyadh in October, the company signed four agreements worth a combined SR6.69 billion, enhancing its capital base and project pipeline.
These agreements include a $690 million framework deal with the National Bank of Kuwait and a $240 million Shariah-compliant equity bridge loan from the International Finance Corp. to fund solar projects in Uzbekistan.
Additionally, ACWA Power entered into a $54 million research and development agreement with China's Lujiazui Administration Bureau, focusing on advancing technologies in solar, wind, energy storage, green hydrogen, and desalination.
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