Riyadh skyline, Saudi Arabia.
ACWA Power came into being in 2004 and headquartered in Riyadh. The Saudi fund PIF picked up a direct stake in the entity in 2018. Image Credit: Pixabay

Dubai: The Saudi wealth fund PIF has raised its stake in Riyadh-based ACWA Power to 50 per cent from 33.36 per cent, a transaction that will see the latter play an “integral role” in PIF’s renewable energy plans.

Of ACWA Power’s assets that are under construction, 74 per cent of the total capacity portfolio is dedicated to clean and low carbon power technologies.

It was in 2013 that PIF struck a partnership with ACWA, when a wholly-owned subsidiary, Sanabil Direct Investments Company, initially invested in the utility company. The alliance was extended in 2018 when PIF made a direct investment in ACWA.

“The additional investment by the Public Investment Fund is a commitment to enabling national champions such as ACWA Power and a vote of confidence in our ability to deliver sustainable, resilient growth without compromising environmental stewardship, social responsibility and good governance,” said Mohammad Abunayyan, Chairman of ACWA Power.

A wide geography

ACWA currently operates in 10 countries, in its role as developer, investor and operator of power generation and water production plants. On a daily basis, it generates 37.7 GW of power and 5.8 million cubic metres of desalinated water.