Beijing-headquartered China Energy Engineering Corporation (CEEC) has been appointed as the engineering, procurement and construction (EPC) contractor for the 2,000MW Haden solar photovoltaic (PV) project in Saudi Arabia.

The project is one of three being developed by a team led by Saudi utility developer Acwa Power under the fourth round of the kingdom's renewable energy programme, which is being procured under the Price Discovery Scheme of the Public Investment Fund (PIF).  

The 2,000MW Haden solar power plant project is located in Mecca.

A project company, Buraiq Renewable Energy Company, has been formed to develop and operate the project.

The other two projects include Muwayh, which has the capacity to generate 2,000MW of energy, and Al-Khushaybi, which has a slightly lower capacity of 1,500MW.

Muwayh is located in Mecca, while Al-Khushaybi is located in Qassim.  

The respective project companies for the Muwayh and Al-Khushaybi solar PVs are Moya Renewable Energy Company and Nabah Renewable Energy Company.

Acwa Power announced the signing of the financing documents for the three solar PV projects on 1 September.

The project companies signed financing documents amounting to SR9.7bn ($2.6bn). The financing duration is 27.3 years.

A consortium of local, regional and international banks agreed to finance the projects. They include:

• Banque Saudi Fransi (local)
• Emirates NBD (UAE)
• First Abu Dhabi Bank (UAE)
• HSBC (UK)
• Mizuho Bank (Japan)
• Riyad Bank (local)
• Saudi National Bank (local)
• Standard Chartered Bank (UK)

Under the PIF's Price Discovery Scheme, these projects are directly negotiated with Acwa Power and its selected partners.

Acwa Power’s effective shareholding in each of the three projects is 35.1%. The PIF-backed Water & Electricity Holding Company (Badeel) owns 34.9% and Saudi Aramco Power Company (Sapco), a subsidiary of state majority-owned oil giant Saudi Aramco, owns the remaining shares.

The three new solar PV facilities have a combined value of SR12.3bn ($3.3bn) and are expected to become operational in the first half of 2027.

In June, Acwa Power announced the signing of the power-purchase agreements with the principal buyer, Saudi Power Procurement Company (SPPC), for the development and operation of the three projects.

Financial closes are expected by the fourth quarter of 2024.

The PIF is procuring 70% of Saudi Arabia's target renewable energy installed capacity by 2030 through the Price Discovery Scheme. The rest is being procured through a public tendering process overseen by SPPC. 

The other PIF projects that are either operational or under construction are:

• 1,500MW Sudair solar PV (round 1)
• 2,060MW Shuaibah solar PV (round 2)
• 2,00MW Ar-Rass 2 (round 3)
• 1,125MW Saad 2 (round 3)
• 1,125MW Kafhah 2  (round 3)