ACWA Power Solar Strategy 2025: Unpacking Global Expansion
ACWA Power’s Solar Strategy 2025: Giga-Scale Projects & Global Partnerships Unpacked
Industry Adoption: ACWA Power’s Shift from Regional Dominance to Global Solar Leadership
Between 2021 and 2024, ACWA Power cemented its position as a dominant force in the solar sector by executing a strategy of regional consolidation. This period was defined by the development of giga-scale projects primarily within the Middle East and Central Asia, underwritten by powerful sovereign partnerships. The company’s symbiotic relationship with Saudi Arabia’s Public Investment Fund (PIF) and its subsidiary Badeel was the cornerstone of this strategy, enabling the financing and development of landmark projects like the 1,500 MW Sudair PV IPP and the 2,060 MW Al Shuaibah PV project. Its business model, focused on securing long-term Power Purchase Agreements (PPAs) with government entities, effectively de-risked these massive capital outlays and created a stable, predictable revenue stream. By year-end 2023, this approach had built a portfolio with 55 GW of gross power capacity, with renewables, predominantly solar, accounting for 44.5%. This was a phase of proving the model: demonstrating the ability to finance and deliver massive solar infrastructure while consistently driving down costs.
The year 2025 marks a dramatic inflection point, where the strategy has pivoted from regional consolidation to aggressive global expansion. The foundation built in the preceding years is now the launchpad for a multi-front international push. A landmark event was the signing of PPAs in July 2025 for 15 GW of new capacity in Saudi Arabia, with 12 GW dedicated to solar, backed by an enormous $8.3 billion investment. This deal showcased an unprecedented ability to deliver competitive energy at scale, with projects like the 3,000 MW Bisha Solar PV plant achieving a record-low Levelized Cost of Energy (LCOE) of 1.29 US cents/kWh. This aggressive domestic expansion now serves as a blueprint for international growth. The key shift is the materialization of this global ambition through significant partnerships and planned investments in high-growth Southeast Asian markets—including a $10 billion MoU in Malaysia and a $10 billion partnership in Indonesia—and a formal entry into the competitive Chinese market. The variety of applications has also broadened, moving beyond standalone solar to integrated solar-plus-storage projects in Morocco and solar as the primary power source for giga-scale green hydrogen facilities like the NEOM plant.
Table: ACWA Power’s Strategic Investments in Solar and Clean Energy
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| China Expansion | 2025 | Announced plans for $30 billion to $75 billion in investments in China by 2030, with a core focus on solar and water desalination, marking a major strategic push into a new key market. | Al-Monitor |
| Saudi Arabia (7 Projects) | 2025 | A consortium including ACWA Power, Badeel, and SAPCO will invest $8.3 billion to develop seven renewable projects totaling 15,000 MW, with 12,000 MW dedicated to solar PV. This investment solidifies domestic market leadership. | PIF |
| Malaysia Expansion | 2025 | Signed agreements for potential investments of up to $10 billion to develop 12.5 GW of power generation, with a strong focus on solar. This secures a significant entry into a key Southeast Asian market. | ESG News |
| China Initial Projects | 2025 | An initial investment of $312 million for solar and wind projects marked the company’s official entry into the Chinese renewable energy market, targeting an initial capacity of over 1 GW. | China Daily |
| Haden, Muwayh, Al Khushaybi (Saudi Arabia) | 2024 | Reached financial close with partners Badeel and SAPCO for a $3.2 billion investment to deliver a combined 5.5 GW of solar capacity, part of Saudi Arabia’s PIF Round 4 projects. | Arab News |
| Kom Ombo (Egypt) | 2023 | Achieved financial close for the $182 million, 200 MW Kom Ombo solar project, expanding its footprint in the North African renewable energy market. | ACWA Power |
| Al-Shuaibah 1 & 2 (Saudi Arabia) | 2023 | Finalized $2.2 billion in financing for two massive solar projects with a combined capacity of 2.63 GW, part of one of the world’s largest solar complexes. | Mercom India |
| Ar Rass 2, Saad 2, Al Kahfah (Saudi Arabia) | 2023 | Announced a $3.25 billion investment with PIF’s Badeel to develop three solar projects totaling 4.55 GW, reinforcing the domestic project pipeline. | Gulf Business |
| Saguling & Singkarak (Indonesia) | 2022 | A $105 million investment marked the entry into the Indonesian market with two floating solar PV projects, establishing an early-mover advantage in the region’s floating solar sector. | ACWA Power |
| Sudair Solar PV (Saudi Arabia) | 2021 | Reached financial close on a $933 million (SAR 3.5 billion) investment for the 1,500 MW Sudair plant, a cornerstone project of the PIF’s renewable energy program. | ACWA Power |
| Sakaka Solar Project (Saudi Arabia) | 2021 | Inaugurated the 300 MW Sakaka project, built with a $320 million (SAR 1.2 billion) investment, one of the first utility-scale solar projects in the Kingdom. | NS Energy |
Table: ACWA Power’s Key Strategic Partnerships in Solar and Clean Energy
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Maharlika Investment Corporation (Philippines) | 2025 | A landmark partnership with the Philippines’ sovereign wealth fund to explore and develop renewable energy projects, securing a strategic entry into another key Southeast Asian market. | MIC |
| Danantara Indonesia & Pertamina | 2025 | Signed an MoU for a massive $10 billion project to develop solar power, green hydrogen, and water desalination, accelerating Indonesia’s energy transition with state-backed partners. | Indonesia Business Post |
| GCL (China) | 2025 | A strategic cooperation agreement to collaborate on solar PV, wind, and energy storage, combining ACWA’s development capabilities with GCL’s manufacturing and resource advantages. | GCL |
| Malaysian Investment Development Authority (MIDA) | 2025 | An MoU to explore up to $10 billion in investments to develop 12.5 GW of renewable power, aligning with Malaysia’s national energy goals. | ACWA Power |
| JinkoSolar | 2024–2025 | Signed a 3 GW TOPCon PV module supply agreement in 2024, followed by a 3.8 GW supply agreement for high-efficiency N-type panels in 2025, securing access to cutting-edge hardware at scale. | JinkoSolar |
| Sumitomo Corporation | 2024 | A joint development agreement for projects in Uzbekistan, including solar-plus-storage, bringing in a strategic co-investor to de-risk and expand its Central Asian portfolio. | ACWA Power |
| LiNa Energy | 2024 | An MoU to collaborate on long-duration energy storage using solid-state sodium batteries, a forward-looking move to secure next-generation storage technology for solar integration. | LiNa Energy |
| LONGi | 2024 | A framework agreement for the supply of high-efficiency solar modules, strengthening the supply chain for its global project pipeline. | LONGi |
| Huawei Digital Power | 2023 | An MoU to co-develop technology to optimize the efficiency and reduce costs of solar and energy storage projects, focusing on integrating smart technologies into utility-scale plants. | Huawei Solar |
| NEOM Green Hydrogen Company | 2023 | An equal joint venture with Air Products and NEOM for a world-scale green hydrogen plant powered by over 4 GW of solar and wind energy, positioning ACWA at the forefront of the hydrogen economy. | NEOM |
| Badeel (PIF Subsidiary) | 2022–2023 | A foundational partnership to develop multiple giga-scale solar projects in Saudi Arabia, including the 2,060 MW Al Shuaibah plant and 4.55 GW of projects under PIF’s Round 3. | EIU.com |
Geographic Footprint: ACWA Power’s Expansion from Saudi Arabia to the World
Between 2021 and 2024, ACWA Power’s geographic strategy was centered on deep consolidation within its home market of Saudi Arabia, which served as the engine for its growth. Mega-projects like the 1,500 MW Sudair plant and the multi-gigawatt Al Shuaibah and Ar Rass complexes demonstrated its capacity to execute at an immense scale. This period also saw strategic, calculated entries into adjacent regions to test and adapt its model. Key moves included the 200 MW Kom Ombo project in Egypt, several large-scale solar and wind projects in Uzbekistan, and an initial foray into Southeast Asia with two floating solar projects in Indonesia. These were not random expansions but targeted moves into markets with strong government-led renewable energy programs, mirroring the success factors of its Saudi model. The geographic focus was clearly MENA and Central Asia, building a fortress-like position in these core regions.
Beginning in 2025, the strategy shifted dramatically from calculated entry to an all-out global push, leveraging the credibility and balance sheet built in the prior years. The most significant development is a massive, well-defined expansion into Southeast Asia. Multi-billion-dollar MoUs with sovereign entities in Malaysia ($10B), Indonesia ($10B), and the Philippines (Maharlika Investment Corp.) signal a new strategic pillar for the company. Simultaneously, ACWA Power made its official entry into the highly competitive Chinese market, not just as a developer but as a strategic partner. This creates a powerful three-pronged geographic focus: continued dominance in Saudi Arabia, rapid scaling in high-growth Southeast Asia, and strategic positioning within China to leverage its technology and supply chains. This diversification mitigates the risk of regional concentration and positions ACWA Power as a truly global player, with a presence spanning from North Africa to East Asia.
Technology Maturity: How ACWA Power Is Scaling Advanced Solar Solutions
The 2021–2024 period was characterized by ACWA Power’s ability to take advanced but proven solar technologies and deploy them at a commercial scale previously unseen. Technologies like bifacial PV panels, used in the 900 MW Shuaa Energy 3 project, moved from being a niche, high-efficiency option to a standard feature in its utility-scale developments. Likewise, the selection of Nextracker’s ‘NX Horizon-XTR’ all-terrain solar trackers for the 1.17 GW Al Kahfah Solar Park showed a willingness to adopt specialized hardware to overcome challenging site topographies, reducing costs and environmental impact. The most significant technological leap during this time was the move from conceptualizing to piloting utility-scale battery energy storage systems (BESS). The Sazagan Solar 1 project in Uzbekistan, with its 500 MW of PV and 334 MW of integrated BESS, was a critical validation point, proving the technical and commercial viability of dispatchable solar power in its portfolio.
In 2025, the focus has shifted from scaling proven technologies to leading the adoption of the *next* generation of hardware and software. The 3.8 GW supply agreement with JinkoSolar for high-efficiency N-type TOPCon panels is a clear signal that ACWA Power is committed to deploying the latest cell technology to maximize energy yield and maintain its cost leadership. Solar-plus-storage has matured from the pilot stage to commercially awarded projects, as seen with the 800 MW Noor Midelt II and III projects in Morocco. This demonstrates that integrated storage is now a bankable, core component of its strategy. Furthermore, the company is moving up the technology stack from hardware to intelligent systems. An announced partnership to develop an AI-driven solar forecasting model will optimize grid stability and energy dispatch. Meanwhile, a pilot collaboration with Saudi Aramco on vanadium flow battery technology indicates an active R&D pipeline for next-generation, long-duration storage, ensuring the company stays ahead of the technology curve.
Table: SWOT Analysis: ACWA Power’s Evolving Strategic Position in Solar
| SWOT Category | 2021 – 2024 | 2025 – Today | What Changed / Resolved / Validated |
|---|---|---|---|
| Strengths | Strong backing from Saudi Arabia’s PIF and a proven track record of developing large-scale solar projects in MENA (e.g., 1,500 MW Sudair PV). Business model built on stable, long-term PPAs with sovereign entities. | Demonstrated ability to achieve world-record low LCOEs (e.g., 1.29 US cents/kWh for Bisha Solar PV). Successful and rapid expansion into high-growth global markets like Southeast Asia and China, backed by multi-billion dollar MoUs. | The company’s strength evolved from being a regional champion with strong state backing to a validated global competitor with a repeatable, bankable model for international market entry and cost leadership. |
| Weaknesses | High geographic concentration risk with the majority of its portfolio in Saudi Arabia and the broader Middle East. Heavy reliance on a small number of key sovereign partners like PIF. | Immense operational complexity and execution risk associated with managing a rapidly growing, multi-billion dollar global portfolio across diverse regulatory and political environments. | The primary weakness has shifted from a concentrated portfolio risk to the managerial and operational challenges of global scale. The risk is no longer “what if MENA slows down?” but “can we execute flawlessly everywhere at once?” |
| Opportunities | Leverage scale to drive down solar tariffs and lead the energy transition in emerging markets. Begin exploring integrated solutions like BESS (e.g., Sazagan Solar 1 pilot) and solar-for-hydrogen (NEOM project). | Capitalize on global demand for green hydrogen by becoming a primary supplier of the renewable power needed. Establish transcontinental energy export corridors to mature markets like Europe. Become the partner-of-choice for nations’ decarbonization goals (e.g., Malaysia, Indonesia). | The opportunity has broadened from building solar plants to architecting entire green energy ecosystems. The 2025 partnerships in Malaysia and Indonesia validate the strategy of aligning with national energy transition plans. |
| Threats | Potential for global supply chain disruptions impacting project timelines and costs. Increasing competition from other state-backed regional developers. | Rising geopolitical tensions impacting global partnerships. Execution risk on massive MoUs that may not fully convert to firm projects. Direct competition in new markets from established global players (e.g., Masdar, TotalEnergies). | Threats have become more macroeconomic and geopolitical. While supply chain issues persist, the larger threat now lies in navigating international politics and ensuring the ambitious MoUs signed in 2025 translate into tangible assets. |
Forward-Looking Insights: What’s Next for ACWA Power’s Solar Dominance
The data from 2025 provides clear signals about ACWA Power’s trajectory for the coming year and beyond. The company is poised to convert its aggressive expansion strategy into a tangible global asset base, and market actors should monitor three key developments. First, Southeast Asia will be the primary battleground and opportunity. The multi-billion dollar MoUs in Malaysia, Indonesia, and the Philippines are the most significant indicators of future growth. The key signal to watch will be the conversion of these agreements into firm PPAs and financial closes, which will validate ACWA’s ability to replicate its Saudi success model in new, complex markets. Second, the relationship with China is evolving into a critical two-way synergy. Beyond developing projects within China, ACWA Power is deepening its reliance on Chinese technology leaders (JinkoSolar, LONGi, GCL) and financiers for its global operations. This symbiotic relationship will be crucial for maintaining its cost leadership and technological edge. Finally, “solar-plus” is now the default standard. Standalone PV projects will become the exception in ACWA’s pipeline. Expect more announcements integrating solar with battery storage, as seen in Morocco, and solar as the backbone for green hydrogen production, following the NEOM blueprint. The ability to structure and finance these complex, integrated projects will be a key differentiator and a critical signal of the company’s evolving capabilities.
Frequently Asked Questions
What is the main change in ACWA Power’s solar strategy in 2025?
The primary change is a strategic pivot from regional consolidation (2021-2024), where ACWA Power focused on the Middle East and Central Asia, to aggressive global expansion in 2025. The company is now using the financial strength and expertise gained from its Saudi projects to push into high-growth markets, most notably Southeast Asia and China.
Which new geographic regions are most important to ACWA Power’s expansion plans?
Southeast Asia and China are the two most critical new regions. ACWA Power has announced potential investments of up to $10 billion each in Malaysia and Indonesia, and a strategic partnership in the Philippines. Simultaneously, it has made a formal entry into the competitive Chinese market, marking a significant step to becoming a truly global player.
How is ACWA Power’s use of solar technology changing?
The company’s technology strategy has evolved from scaling proven technologies like bifacial panels to leading the adoption of next-generation solutions. Key changes in 2025 include large-scale procurement of advanced N-type TOPCon solar panels, making integrated solar-plus-storage a standard offering in new projects, and exploring future tech like AI-driven forecasting and long-duration flow batteries.
What role do partnerships play in ACWA Power’s strategy?
Partnerships are fundamental to ACWA Power’s model. Sovereign partnerships, like with Saudi Arabia’s PIF and new entities in Malaysia and Indonesia, are crucial for financing and de-risking massive giga-scale projects. At the same time, technology partnerships with manufacturers like JinkoSolar, LONGi, and GCL secure the supply chain for advanced, cost-effective hardware, which is essential for maintaining its global cost leadership.
The article mentions a record-low cost of energy. How low has ACWA Power driven solar costs?
In 2025, ACWA Power achieved a new world-record low Levelized Cost of Energy (LCOE) of 1.29 US cents/kWh for its 3,000 MW Bisha Solar PV plant in Saudi Arabia. This demonstrates its ability to leverage immense scale and strong partnerships to deliver highly competitive clean energy, a key strength it aims to replicate globally.
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