Onshore Wind, Saudi Aramco’s 3 GW Projects with ACWA Power, $8.2 B Investment, and 2 PPAs (2025-2026)

Onshore Wind Adoption, Saudi Aramco’s 3 GW Onshore Push Over Offshore

Saudi Aramco’s wind energy strategy through 2026 prioritizes rapid, cost-effective scaling of onshore capacity over direct investment in the nascent offshore wind sector. The company executes this strategy indirectly via its subsidiary, the Saudi Aramco Power Company (SAPCO), which acts as a strategic investor within a powerful consortium. This approach allows Aramco to meet national renewable targets and build a foundational energy portfolio while avoiding the higher costs and longer development timelines associated with offshore wind. While other international oil companies like Shell and BP have pursued direct development roles in global offshore wind, Aramco’s 2025 activities show a calculated focus on domestic, land-based projects.

SAPCO Consortium as the Primary Vehicle

Aramco’s participation in the wind sector is channeled exclusively through its 30% stake in projects developed by a consortium with developer ACWA Power and the Public Investment Fund’s (PIF) company Badeel. This structure positions Aramco as a capital partner rather than a direct developer. The consortium achieved a landmark financial close in late 2025 for a $8.2 billion investment to develop 15 GW of renewable capacity, with 3 GW allocated specifically to onshore wind. This model leverages the development expertise of ACWA Power while capitalizing on Aramco’s financial strength.

Onshore Dominance and Cost Competitiveness

The decision to focus on onshore is rooted in economics. The consortium’s onshore projects, 1, 000 MW Shaqra and 2, 000 MW Starah, secured record-low electricity prices of $18.62/MWh and $20.50/MWh, respectively. These prices set a competitive benchmark that the nascent Saudi offshore wind market, valued at a modest $152.3 million in 2025, cannot yet match. The planned 500 MW Saudi Arabia Offshore Wind Farm_Plambeck project has no public link to Aramco, reinforcing the company’s current land-based strategy.

$8.3 B Investment, Saudi Aramco’s Onshore Wind Capital Deployment

Saudi Aramco’s financial commitment to wind power is demonstrated through SAPCO’s participation in multi-billion-dollar investments aimed at fulfilling Saudi Arabia’s Vision 2030 goals. The capital deployment in 2025 is not for exploratory pilots but for utility-scale projects with secured offtake agreements, indicating a mature investment strategy focused on immediate capacity addition and long-term, stable returns. This contrasts with the more speculative, technology-focused approaches of peers like Eni in floating wind.

$8.3 B Portfolio Financial Close

In late 2025, the SAPCO, ACWA Power, and Badeel consortium achieved financial close on approximately $8.3 billion to develop a 15 GW portfolio of renewable projects. This investment is a cornerstone of the Kingdom’s clean energy transition, with the full capacity expected to be delivered by 2028. Within this portfolio, 3 GW is dedicated to onshore wind, representing a substantial capital allocation to the technology.

Record-Low Tariffs Drive Investment Case

The investment is underpinned by long-term Power Purchase Agreements (PPAs) with the Saudi Power Procurement Company (SPPC). The commercial viability of the $8.3 billion investment is secured by the record-low tariffs achieved for the Shaqra ($18.62/MWh) and Starah ($20.50/MWh) projects. These prices, achieved by using advanced 10 MW turbines from Goldwind, establish a highly competitive cost structure that justifies the large-scale capital outlay.

Table: Saudi Aramco (via SAPCO) Key Renewable Investments (2025-2026)

Saudi Aramco 3 Key Partnerships for 15 GW Renewables (2025-2026)

Saudi Aramco’s wind strategy is entirely dependent on a small number of strategic, high-impact partnerships that combine capital, development expertise, and technology supply. Unlike the direct-development model used by majors like Total Energies, Aramco operates as a consortium partner, leveraging the capabilities of specialized firms to execute its renewable energy ambitions. This collaborative framework is critical for delivering large-scale projects on time and on budget.

ACWA Power and Badeel Consortium

The core partnership is the joint venture between SAPCO, ACWA Power, and the PIF’s Badeel. Formally structured in 2025, this consortium is the primary vehicle for all of Aramco’s significant wind and solar developments. ACWA Power brings project development and operational expertise, Badeel provides sovereign backing and alignment with national strategy, and SAPCO contributes capital and offtake security, making the consortium a formidable force in the region’s energy market.

Goldwind Technology Partnership

The commercial viability of the consortium’s wind projects hinges on its technology partnership with Chinese manufacturer Goldwind. In October 2025, Goldwind signed a comprehensive agreement to supply, install, and service the 10 MW turbines for the 3 GW PIF 5 projects (Shaqra and Starah). This partnership is essential for achieving the record-low generation costs that underpin the projects’ Power Purchase Agreements, with the first turbine shipment dispatched in June 2026.

Table: Saudi Aramco Key Wind-Related Partnerships (2025-2026)

Saudi Arabia Focus, Saudi Aramco’s Concentrated Wind Strategy

Aramco’s wind energy activities are geographically concentrated entirely within Saudi Arabia, directly supporting the Kingdom’s Vision 2030. This domestic focus ensures that investments align with national industrial policy and energy security objectives. Unlike its oil and gas operations, Aramco’s renewable strategy is not global but is instead a tool for national economic diversification.

Riyadh Province as the Epicenter

The bulk of Aramco’s wind-related investment is directed toward the Riyadh province. Both the 1, 000 MW Shaqra and 2, 000 MW Starah projects are located there. This geographic clustering suggests a strategy of creating a regional hub for wind energy, potentially simplifying logistics, supply chains, and grid integration for these gigawatt-scale projects.

Vision 2030 as the Geographic Driver

The sole driver for this geographic concentration is Saudi Arabia’s Vision 2030 and its goal to source 50% of its power from clean energy. The SAPCO-ACWA-Badeel consortium was formed explicitly to deliver on this target. All projects, investments, and partnerships are calibrated to meet this domestic objective rather than to compete in international renewable energy markets.

Onshore Commercial Scale vs Nascent Offshore, Saudi Aramco Technology Focus

Aramco’s technology strategy for wind is pragmatic, prioritizing commercially mature and cost-effective onshore solutions over emerging technologies. The 2025-2026 period is characterized by the large-scale deployment of proven onshore turbines, while offshore wind remains a subject of academic and economic feasibility studies rather than active investment.

Proven 10 MW Onshore Turbines

The selection of Goldwind’s 10 MW turbines for the Shaqra and Starah projects demonstrates a focus on deploying proven, large-scale technology to achieve economies of scale and cost reductions. This technology is at a commercial maturity level that allows for predictable performance and bankable, long-term PPAs, which is the core of the consortium’s business model.

Offshore Wind as a Future Hydrogen Play

While not a focus in 2025, offshore wind appears as a potential second-horizon opportunity, primarily linked to green hydrogen production. Research indicates that green hydrogen produced from offshore wind in Saudi Arabia could have a Levelized Cost of Hydrogen (LCOH) between $6.93 and $8.52/kg. As Aramco advances its goal to become a top hydrogen supplier, the need for dedicated, large-scale renewable power could eventually create a business case for entering the offshore wind market, but this remains a post-2026 consideration.

SWOT Analysis of Saudi Aramco’s Wind Strategy

Saudi Aramco’s approach to wind energy through 2026 reveals a highly focused, risk-averse strategy. The company leverages its primary strengths—capital and strategic influence—while mitigating its weaknesses in renewable project development through partnerships. This has allowed for rapid progress in onshore wind but leaves the company as a follower, not a leader, in the global offshore wind sector.

Table: SWOT Analysis for Saudi Aramco’s Wind Initiatives (2025-2026)

Scenario: Saudi Aramco’s Post-2026 Offshore Wind Entry

The most critical strategic question for Saudi Aramco is not if, but when and how, it will enter the offshore wind market. The current focus on executing its multi-billion-dollar onshore commitments provides a clear roadmap through 2026. A strategic pivot toward offshore wind will likely be triggered by the scaling of the Kingdom’s green hydrogen ambitions, which will require dedicated, gigawatt-scale renewable power sources beyond what is already planned onshore.

• If the 3 GW Shaqra and Starah onshore wind farms are completed on time and budget by 2028, watch for announcements from the SAPCO-ACWA-Badeel consortium participating in a new round of renewable energy tenders that explicitly include offshore wind blocks. This would signal that the consortium is ready to take on more technologically complex projects.
• If Saudi Arabia’s goal to produce 4 million tons of hydrogen annually by 2030 gains further traction, watch for Aramco to initiate feasibility studies linking specific offshore wind lease areas in the Red Sea or Persian Gulf to new green hydrogen or ammonia production facilities.
• If the cost of offshore wind in the region begins to decline, approaching the low costs seen in Europe’s top 10 projects for 2025, watch for Aramco to potentially acquire a stake in an experienced international offshore wind developer as a way to import technical expertise, similar to how other national oil companies have entered the sector.

The questions your competitors are already asking

This report covers one angle of Saudi Aramco’s onshore wind strategy. The questions that matter most depend on your work.

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