Riyadh, Saudi Arabia – Saudi Arabia is set to embark on a significant endeavor to expand its power generation capacity, with plans to attract investment amounting to hundreds of billions of dollars by the end of this decade. Marco Arcelli, the CEO of ACWA Power Co., based in Riyadh, Bloomberg reported.
To achieve their generation capacity targets, Saudi Arabia aims to construct 60 to 80 gigawatts of power plants utilizing renewable energy sources such as wind and solar, alongside an additional 30 gigawatts generated from gas-fired plants. ACWA Power, a prominent player in the energy sector, is entrusted with developing a substantial portion, accounting for 70%, of Saudi Arabia’s renewable energy needs, the report added.
This extensive undertaking aligns with the nation’s broader Vision 2030 initiative, spearheaded by Crown Prince Mohammed bin Salman. The objective is to diversify the Saudi economy, reduce reliance on hydrocarbons, and create new employment opportunities.
To facilitate these goals, Saudi Arabia seeks to attract international investment, fostering partnerships with local companies like ACWA Power.
Arcelli shared his insights during his speech at the kingdom’s main investment conference in Riyadh.
In addition to domestic investments, ACWA Power is strategically eyeing expansion opportunities in Central Asia and China. Arcelli also noted that the potential for a slowdown in China’s economic growth presents a promising opening for companies like ACWA Power, which specialize in infrastructure investment.
Moreover, the Saudi energy company is gearing up to establish several green hydrogen plants, including an $8.5 billion facility at Neom, a futuristic city situated on Saudi Arabia’s northwest coast. ACWA Power’s global expansion plan extends through 2030, with aspirations to initiate operations in China and other key regions.