ACWA Power Company, Saudi Arabia announces the commencement of commercial operations for the 700-megawatt (MW) Ar Rass 1 solar photovoltaic independent power plant (IPP) in Al Qassim provinc of Saudi Arabia.

The Company stated that, Ar Rass Solar Energy Company, owned 40% by ACWA Power, received the commercial operations certificate on August 15.

During March 2022, ACWA Power and the Saudi Power Procurement Company (SPPC), the principal buyer, signed a power purchase agreement (PPA) to develop the 700 MW Ar Rass solar photovoltaic independent power plant (IPP).

Under the terms of the agreement, ACWA Power will sell energy produced by the project to SPPC for a period of 25 years.

Valued at US$450 million (SAR 1.7billion), Ar Rass is the largest PV project that has been tendered as part of Saudi Arabia’s National Renewable Energy Programme (NREP) to date, for which ACWA Power has been earmarked to deliver 70% of the total 58.7 GW target.

ACWA Power will hold a (40.1%) stake in the facility, along with (20%) by the Water and Electricity Holding Company (Badeel), a wholly owned PIF Portfolio Company, and (39.9%) will be owned by the State Power Investment Corporation from China. When fully functional, the project will produce energy to power around 132,000 homes in central Saudi Arabia.