Acwa has announced that two of its solar independent power producer (IPP) plants in Saudi Arabia have been subject to temporary power dispatch limitations following instructions from the grid operator.

According to the developer, the grid operator cited alleged reactive power fluctuations affecting grid stability. Acwa said both project companies deny the allegations.

The affected assets are the 1,425MW Al-Kahfah solar photovoltaic (PV) IPP and the 2,000MW Ar Rass 2 solar PV IPP.

Saudi Arabia’s Water & Electricity Holding Company (Badeel) and Acwa, formerly Acwa Power, signed power-purchase agreements (PPAs) with Saudi Power Procurement Company (SPPC) for the development and operation of the plants in 2023.

Ishaa Energy Renewable Company and Nawwar Renewable Energy Company are the project companies specially set up to manage the Al-Kahfah and Ar Rass 2 projects, respectively. Both were set up as joint ventures between Acwa and Badeel.

• Al-Kahfah
  • Received commercial operation certificate: November 2025
  • Under dispatch limitation since: 12 December 2025
  • Partial dispatch permitted since: 11 February 2026
  • Accumulated estimated revenue challenged (to end-March): approx. SR95m ($25.3m)
• Ar Rass 2
  • Received initial commercial operation certificate: September 2025
  • Under dispatch limitation since: 16 January 2026
  • Partial dispatch permitted since: 8 March 2026
  • Accumulated estimated revenue challenged (to end-March): approx. SR73m ($19.7m)

Acwa said both project companies have challenged the matter and are conducting detailed technical assessments, including independent third-party analysis. The company said it is also coordinating with the relevant authorities to enable the full restoration of plant operations.