Silk Road Fund Buys 49% Stake in Saudi Arabia’s ACWA Power Unit
ACWA Power, a developer, owner and operator of power generation and water desalination plants, signed an agreement with China’s Silk Road Fund, introducing it as a partner and shareholder in ACWA Power Renewable Energy Holding Ltd. (ACWA Power RenewCo) — ACWA Power’s renewable energy platform that currently owns a number of its existing renewable energy projects — with a 49 percent stake in the company.
ACWA Power RenewCo will own ACWA Power’s CSP, PV, and wind assets across the UAE, South Africa, Jordan, Egypt and Morocco, yielding an aggregate capacity of 1668 MW.
“ACWA Power and Silk Road Fund’s further collaboration is a mirror image of the robust and strategic ties between Saudi Arabia and China that is strengthened year after year,” said President and CEO of ACWA Power Paddy Padmanathan.
“The agreement signed today is a testament of the commendable goals we will achieve with Silk Road Fund that will enhance regional connectivity and embrace a brighter future in renewable energy deployment.”
ACWA Power’s Chief Investment Officer, Rajit Nanda, said: “As a leading developer of power and water assets in the region, and being based in a Belt and Road country, welcoming Silk Road Fund on board as a shareholder further cements our position of being able to support both the economic transformation envisioned by the Belt and Road initiative as well as Saudi Arabia’s forward-looking Vision 2030.”
“Our continual achievements with Silk Road Fund set an example of building strategic business ties, and making the best use of the competitive advantages of both companies,” Nanda added.
ACWA Power and Silk Road Fund have previously successfully co-invested in two UAE-based projects, including the 2400MW Hassyan clean coal power plant, and the 950MW Hybrid CSP and PV fourth phase of MBR Solar Park to respectively power 1.3 million people and 320,000 residential homes.