Several Saudi companies, including oil giant Saudi Aramco and a company owned by the kingdom's sovereign wealth fund, have announced the financial settlement of a massive solar project in Saudi Arabia worth $2.37 billion.

Saudi Aramco Power Company (SAPCO) is a wholly owned subsidiary of Saudi Aramco, the world's largest oil company. And Saudi Arabia's ACWA Power Company and Hydropower Holding Company (Badeel), wholly owned by the Public Investment Fund (PIF), are advancing the Al Shuaibah 1 and Al Shuaibah 2 solar PV projects, which are expected to generate more than 2.6 GW of clean electricity. Al Shuaibah PV 1 and Al Shuaibah PV 2, with a capacity of 600 MW and 2,031 MW respectively, will be able to power approximately 450,000 Saudi homes. The plant, with a total investment of about $2.37 billion, is expected to begin commercial operations in 2025.

Marco Arcelli, CEO of ACWA Power, said the financing of this ground-breaking project marks an important step towards achieving Saudi Arabia's clean energy goals, in line with the National Renewable Energy Plan, which aims to generate 50% of its electricity from renewable sources by 2030.

Mohammed Al Qahtani, President of Aramco's downstream business, commented, "Our participation in the Al Shuaibah PV 1 and Al Shuaibah PV 2 projects is consistent with our efforts to reduce Aramco's carbon footprint and create a more sustainable future. "While oil and gas will play an important role in meeting current and future energy needs, renewables will play an increasing role in the energy transition to meet the challenges of climate change."

Saudi Arabia will spend about $270 billion (1 trillion riyals) on low-carbon energy projects by 2030, Energy Minister Salman said earlier this year, adding that the kingdom would also invest in modernizing its electricity grid.

When it comes to wind and solar, Saudi Arabia may have the most ambitious capacity increase targets in the world. By 2030, Saudi Arabia aims to have about 58 GW of wind and solar capacity, up from less than 1 GW today. Editor/Xu Shengpeng