ACWA Power Completes Acquisition of Major Power and Water Desalination Assets in Bahrain, with Kuwait to follow

Summary

• ACWA Power has completed a major acquisition of power generation and water desalination assets in Bahrain. The transfer of the Kuwait assets is progressing and remain subject to the completion of customary technical conditions, following which the transaction will be finalised.

• The transaction strengthens ACWA Power’s leadership in water desalination, expands its regional power generation footprint, and is supported by long-term offtake contracts that underpin recurring earnings and cash flows.

Riyadh, Kingdom of Saudi Arabia: ACWA Power, the world’s largest private water desalination company, a leader in energy transition, and first mover into green hydrogen, today announced the successful completion of its strategic acquisition of ENGIE’s stakes in gas-fired power generation and water desalination assets in Bahrain, along with the related Operations & Maintenance (O&M) companies.

The acquired Bahrain portfolio consists of a 45% equity stake in Al Ezzel IPP (940MW CCGT), 45% in Al Dur IWPP (1,220MW CCGT and 218,000 m3/day SWRO), a 30% stake in Al Hidd IWPP (930MW CCGT and 409,000 m3/day MSF), as well as 100% ownership of Al Ezzel O&M Co, which will contribute to providing in-house O&M services across these assets.

This transaction, preceded by the signing of a Sale and Purchase Agreement (SPA) in February 2025, represents a wider acquisition. It covers ENGIE’s interests in gas-fired power generation and water desalination assets in Bahrain, while the Kuwait assets form part of the broader transaction perimeter and will be transferred following the completion of customary technical conditions. The Kuwait portfolio includes 17.5% equity stake in Az Zour North IWPP (1,520MW CCGT, 486 thousand m3/day MED) as well as 50% ownership in Az Zour North Operations & Maintenance Co.

Together, the Bahrain and Kuwait portfolios represent a combined capacity of approximately 4.6 GW of gas-fired power generation and 1.1 mln m3/day of water desalination, for a total consideration of USD 693 million (before customary purchase price adjustments).

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The completion of the Bahrain-related phase of this larger acquisition marks a pivotal milestone for ACWA Power. It reinforces our position as a global leader in water desalination, significantly extends our footprint in the regional power generation market, and consolidates our presence in the attractive and dynamic Bahrain market, with Kuwait to follow. These fully operational assets, underpinned by secured off-take contracts, strengthen our financial position and enable us to continue providing safe and reliable power and water to local communities and industries across the region.

Marco Arcelli, Chief Executive Officer of ACWA Power„

The newly acquired assets are fully operational and well-maintained, adding immediately to ACWA Power’s operating portfolio and further enhancing its industry-leading O&M capabilities. This acquisition supports ACWA Power’s broader objective of reaching USD 250 billion in assets under management by 2030.