November 15 (Renewables Now) - A consortium led by ACWA Power has reached the financial closure of the 300-MW Sakaka solar photovoltaic (PV) project in Saudi Arabia, it was announced today.
The group, which also includes Saudi contractor and investor AlGihaz Holding Company, has formed a new firm called Sakaka Solar Energy Company (SSEC) in which ACWA Power holds a 70% stake. SSEC will own the SAR-1.2-billion (USD 320m/EUR 283m) Sakaka project, which has a 25-year power purchase agreement (PPA) with Saudi Power Procurement Company (SPPC). The Renewable Energy Project Development Office (REPDO) awarded the project to the ACWA Power-led consortium in January 2018 at a world record tariff of USD 0.0234 (EUR 0.0207) per kWh.
ACWA Power said in a statement that the transaction is financed through limited recourse ring fenced project financing with the entire debt fully underwritten by Natixis. At the same time, Arab National Bank has provided an equity bridge loan.
The Sakaka plant will be built in Al Jouf at a site spanning over 6 sq km (2.3 sq m). A consortium of Mahindra Susten and Chint will act as the engineering, procurement and construction (EPC) contractor, while Diaa Sakaka Operation and Maintenance Company, an affiliate of First National Operations & Maintenance Co Ltd (NOMAC), will take care of the operation and maintenance of the facility.
Commercial operation is expected to start at the end of 2019.
(SAR 1.0 = USD 0.267/EUR 0.236)
(USD 1.0 = EUR 0.885)