By Christian Moess Laursen


Saudi Aramco's power unit Aramco Power, ACWA Power and Badeel signed deals worth 12.3 billion riyals ($3.28 billion) to sell solar power to state-owned Saudi Power Procurement Company, as the oil-rich country looks to diversify its energy sources and replace liquid fuels.

Saudi Arabia's Ministry of Energy said Wednesday that it had signed purchase agreement for three new solar photovoltaic projects with a consortium consisting of the three companies. ACWA Power made the value of the contracts public in a stock announcement Thursday.

The Saudi government aims to tender new renewable energy projects with a total capacity of 20GW every year, with the aim of reaching between 100GW to 130GW by 2030.

Since the start of the renewables program, it has awarded 21 projects with a total capacity of 19GW, including the solar-power projects signed Wednesday.

The plants--Haden, Muwayh, and Al Khushaybi--are located in the north and western regions of the kingdom and will be able to produce 2GW, 2GW and 1.5GW, respectively.

ACWA said Thursday that Badeel--a wholly-owned subsidiary of the Saudi wealth fund Public Investment Fund--will have a 34.9% stake in each of the three projects.


Write to Christian Moess Laursen at christian.moess@wsj.com


(END) Dow Jones Newswires

06-27-24 0723ET