Saudi Aramco, the Saudi Arabian Oil Company, is reportedly investing along with the country's self-governing wealth fund and Riyadh-based ACWA Power in a major solar project with 1.5 GW capacity as the world's largest energy business makes a foray into renewables.

As per sources, the Saudi Aramco Power Co. has joined ACWA Power and the Public Investment Fund-owned Water & Electricity Holding Co., or Badeel, by acquiring a 30% in the special purpose vehicle Sudair One Renewable Energy Co.

As a result, ACWA Power and PIF both will own a 35% share in the company. PIF owns 50% of ACWA Power.

The Sudair solar PV facility, worth $907 million, is the first venture under PIF's renewable energy program, which intends to support Saudi Arabia's energy transformation by contributing 70% of the country's renewable energy under the National Renewable Energy Program, according to ACWA. The investment is Aramco's first in the program.

Mohammed Al Qahtani, Senior VP of downstream at Aramco, commented that while hydrocarbons remain an essential element of the energy mix for the coming decades, renewables such as solar will play a crucial role in achieving the world's climate goals.

Sudair is one of several low-carbon energy choices being implemented by Aramco and will help Saudi Arabia's objective to generate part of the country's electricity needs from renewable energy by 2030.

In its second-quarter results report on Aug. 9, the Aramco stated that it is exploring prospective renewable energy projects with partners to make investments.

Deputy Governor and Head of MENA investments at PIF, Yazeed Alhumied, said that the significant renewable energy project is an essential step toward PIF's goal of developing 70% of Saudi Arabia's renewable energy capacity by 2030, as defined in the Saudi Vision 2030.

Source Credit - https://www.spglobal.com/platts/en/market-insights/latest-news/electric-power/081521-saudi-aramco-joins-local-15-gw-solar-project-with-a-30-stake-in-renewables-push