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Saudi Arabia Vows to Take Legal Action Against Unlicensed Energy Use

The Saudi government stressed the importance of obtaining the necessary licenses for the use petroleum products to generate electricity. (Asharq Al-Awsat)
The Saudi government stressed the importance of obtaining the necessary licenses for the use petroleum products to generate electricity. (Asharq Al-Awsat)
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Saudi Arabia Vows to Take Legal Action Against Unlicensed Energy Use

The Saudi government stressed the importance of obtaining the necessary licenses for the use petroleum products to generate electricity. (Asharq Al-Awsat)
The Saudi government stressed the importance of obtaining the necessary licenses for the use petroleum products to generate electricity. (Asharq Al-Awsat)

As Saudi Arabia continues to push for energy efficiency, rationalization of consumption, and adherence to sustainability standards, the Saudi Ministry of Energy vowed to hold accountable those who waste oil products, or transfer them to various facilities for the purpose of generating electric power without obtaining the necessary licenses.

In a statement on Sunday, the ministry said that the use of petroleum products for such purposes exposes violators to legal accountability, in accordance with the provisions of the petroleum products trading system and within the framework of efforts to curb the waste of vital resources.

Electric power shall be obtained through the licensed service provider, in accordance with the rules and procedures issued by the Water and Electricity Regulatory Authority, the ministry added.

For its part, the Water and Electricity Regulatory Authority said that practicing any of electricity activities without obtaining the necessary statutory licenses was a violation of the provisions of the electricity system.

It added that the electricity by-law stipulates that all electrical activities are subject to the authority’s regulation, and that whoever practices any of them must have a valid license issued by the authority.

The authority noted that licensing aims to regulate these activities and to monitor the quality and reliability of services due to their importance to the consumers, the environment and the national economy.

It also urged those who practice any unlicensed activity to apply to the authority to rectify their status to avoid penalties for violations.

Saudi Arabia is a leading country in energy awareness and the rationalization of its uses. The Kingdom established a center for energy efficiency, which aims to be an international reference in this field, by working with local and international stakeholders in the government and private sectors, with the aim of developing knowledge and experience and applying best practices at home and abroad.

Saudi Arabia, through the Public Investment Fund (PIF), owns the National Company for Energy Efficiency Services (Tarshid), which seeks to be a pioneer in the energy efficiency field and to build towards a more sustainable future.

Tarshid has a mandate to develop, fund and manage impactful energy efficiency projects in government and commercial sectors that achieve significant energy savings for the Kingdom.

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ACWA Power Reports 44% Surge in Q1 Profit to $113.8 Million

A wind turbine at the Suez Energy Project. (ACWA Power)
A wind turbine at the Suez Energy Project. (ACWA Power)
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ACWA Power Reports 44% Surge in Q1 Profit to $113.8 Million

A wind turbine at the Suez Energy Project. (ACWA Power)
A wind turbine at the Suez Energy Project. (ACWA Power)

Saudi energy and water developer ACWA Power reported a 44% year-on-year increase in net profit for the first quarter of 2025, reaching SAR 427.15 million ($113.8 million), according to a disclosure filed with the Saudi Stock Exchange (Tadawul).

The company attributed the strong performance primarily to higher total revenues, an increase in other operating income before impairment and other charges, a reduction in impairment expenses, and a rise in deferred tax balances. These gains were partially offset by increased costs in project development, general and administrative expenses, and financing charges.

ACWA Power’s revenue rose 57% in the quarter, reaching SAR 1.97 billion ($525.2 million), supported by growth across development and construction management services, operation and maintenance contracts, and electricity sales.

In a letter to investors, CEO Marco Arcelli emphasized that the company maintained strong momentum in developing new projects across all sectors during the first quarter.

These initiatives not only lay the foundation for stable future revenues and cash flows, but also contribute to earnings from procurement and construction management, reinforcing the company’s commitment to financial and operational growth, he noted.

Arcelli expressed optimism about the company’s long-term outlook, highlighting ongoing efforts to strengthen project development pipelines, improve procurement strategies, and streamline construction execution.

ACWA Power is building a solid platform for consistent and sustainable growth while remaining focused on delivering its strategic objectives, he stressed.

Among the company’s most significant recent projects are several in renewable energy and water. In the solar sector, ACWA Power is developing the Al-Muwayh solar power plant in Saudi Arabia with a capacity of 2,000 megawatts and an investment of approximately SAR 35 million. The plant is scheduled to begin operations under a long-term power purchase agreement starting in 2027.

The company is also working on the Al-Khushaybi solar plant, with a capacity of 35 megawatts.

In wind energy, ACWA Power is constructing the Bash wind farm in Uzbekistan, a 500-megawatt project expected to be operational in the first quarter of 2025. Another wind project in collaboration with Uzbekistan’s national energy company will have a capacity of 65 megawatts and is also scheduled for completion in 2025.

In the water sector, ACWA Power owns a 40% stake in the Taweelah desalination plant in the United Arab Emirates, one of the largest facilities of its kind with a daily capacity of 3 million cubic meters. The company also holds a 35% share in the Sudair solar project in Saudi Arabia, which will generate 1,500 megawatts of electricity.

ACWA Power has expanded its international footprint with recent acquisitions, including an 85% stake in Yanghe New Energy Technology in China. The company also acquired strategic assets in Egypt and Kuwait and is actively entering new markets while expanding its presence in existing ones.

The company continues to prioritize innovation and R&D, particularly in solar and wind energy, green hydrogen, and energy storage. It is advancing new projects, increasing energy sales, and strengthening its global presence through strategic partnerships, including collaborations with Italian firms and others in Africa and East Asia.

ACWA Power has also launched a new research and development center in Shanghai as part of its international growth strategy.