Saudi Arabia has announced a landmark renewable energy deal in line with its “Vision 2030” diversification strategy. A Saudi-led consortium – spearheaded by ACWA Power and Aramco Power (a subsidiary of oil giant Aramco) – signed power purchase agreements to develop 15 gigawatts (GW) of clean energy projects (solar and wind) with a collective investment of about USD 8.3 billion.
The agreements were inked in the presence of Energy Minister Prince Abdulaziz bin Salman, underscoring the high-profile backing for this green expansion. ACWA Power, a leading utilities developer, will serve as the primary developer of seven new projects in partnership with the Water and Electricity Holding Company (Badeel, part of the Public Investment Fund) and Aramco Power.
This massive deal represents Saudi Arabia’s largest renewable energy push to date, marking a significant step toward the Kingdom’s ambitious climate and energy goals. Aerial view of a large-scale solar photovoltaic installation in Saudi Arabia, part of the Kingdom’s drive to add 15 GW of renewable capacity under Vision 2030.
Seven Projects Across Key Regions
The consortium’s projects will span multiple regions of Saudi Arabia, reflecting a nationwide approach to boosting renewable capacity. Plans include five major solar photovoltaic (PV) plants located in the provinces of Aseer (southwest), Medina and Mecca (west), and Riyadh (central), as well as two large wind farms to be built in the Riyadh region.
The solar installations will contribute about 12 GW of capacity, while the wind projects add roughly 3 GW, combining the total to 15 GW. The sites – such as the 3,000 MW solar plant in Aseer and 2,000 MW wind project near Riyadh – are slated to begin operation between late 2027 and early 2028.
Once online, these seven projects will feed substantial green power into the grid, significantly expanding Saudi Arabia’s renewable energy portfolio. Officials note that beyond environmental benefits, the projects are expected to stimulate economic growth by creating jobs, attracting investment, and localising supply chains in the fast-growing green energy sector.
This initiative is a cornerstone of the “Saudi National Renewable Energy Program” led by the Ministry of Energy. It also aligns with the Public Investment Fund’s mandate to develop 70% of the Kingdom’s renewable target capacity by 2030.
The Saudi Power Procurement Company (SPPC) will act as the offtaker for all seven projects, having signed long-term power purchase agreements to buy the clean electricity once the plants are operational. The involvement of SPPC and PIF-backed Badeel highlights strong government support and financing for the ventures. ACWA Power’s CEO, Marco Arcelli, hailed the deal as a “significant milestone” that underscores the nation’s commitment to a sustainable energy landscape and its “ambitious renewable energy targets.”
Driving Vision 2030 Renewable Goals
These projects are instrumental for Saudi Arabia’s Vision 2030, which calls for a diversified economy and reduced reliance on oil. Renewable energy is a key pillar of that vision. The government has set an ambitious goal to generate 50% of the country’s electricity from renewable sources by 2030.
In practice, this translates to building up to 130 GW of renewable capacity by 2030 – a target the new projects will help advance. At 15 GW, the ACWA Power/Aramco-led bundle of projects represents over 11% of that total 2030 goal, making it a substantial contribution in a single stroke. Saudi officials have framed the investment as not only an environmental necessity but also a strategic economic move.
By boosting domestic clean energy capacity, the Kingdom aims to free up more oil for export, meet growing power demand sustainably, and promote a homegrown renewable energy industry. It forms part of a broader strategy in which Saudi Arabia seeks to become a global leader in clean energy and technology, leveraging its vast land and sun exposure for solar farms and its windy sites for wind turbines.
Equally important, the partnership behind these projects signals the changing energy landscape in the country. Aramco’s involvement through Aramco Power indicates that even the national oil company is investing in renewables as it pursues net-zero operational emissions by 2050.
“Through such investments, we aim to unlock additional value from Saudi Arabia’s abundant natural resources and grow Aramco’s new energies portfolio,” said Waleed Al Saif, Aramco’s Senior VP for New Energies.
ACWA Power, meanwhile, has rapidly become one of the world’s leading private renewable developers; with this deal, ACWA’s total renewable capacity under management will exceed 50 GW globally. The consortium’s blend of public and private expertise exemplifies how Saudi Arabia is executing Vision 2030 through public-private partnerships in the energy sector.
If completed on schedule, these key projects will not only cut millions of tons of carbon emissions annually but also help localise new industries (from solar panel assembly to wind turbine maintenance) under the “Vision 2030” diversification drive.
In sum, the ACWA Power–Aramco Power consortium’s initiative marks a pivotal stride in Saudi Arabia’s journey to a sustainable, post-oil future, demonstrating how high-level vision is translating into tangible renewable infrastructure on the ground. The world will be watching as the Kingdom races to meet its clean energy promises by the end of the decade.