Saudi Acwa Power Reports $182.4 Mln Profit in H1

The largest wind turbine in Central Asia that ACWA Power succeeded in installing. (The company's website)
The largest wind turbine in Central Asia that ACWA Power succeeded in installing. (The company's website)
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Saudi Acwa Power Reports $182.4 Mln Profit in H1

The largest wind turbine in Central Asia that ACWA Power succeeded in installing. (The company's website)
The largest wind turbine in Central Asia that ACWA Power succeeded in installing. (The company's website)

Saudi-based Acwa Power has announced robust results for the first half recording a net profit of SAR 684 million ($182.4 million), up 26% over last year.

Financial expenses were higher mainly on account of the new debt issuance for growth and the continuous increase in market rates. This was more than offset by increase in other income and favorable deferred tax movement as against the same period last year.

"The results of the first half of the year are a reflection of our privileged position of having a solid business model, excellent talent and a passion for making a difference," said Marco Arcelli, Chief Executive Officer, ACWA Power.

"This success has driven us to even greater ambitions—to being the world’s best in the three core segments of renewable energy, water, and green fuels—by the end of the decade. Now, our effort, people, and finances will focus on making this dream a reality," he added.

On the results, Chief Financial Officer Abdulhameed Al Muhaidib said: "Acwa Power’s diversified business model continues to present solid future growth with more projects coming online. It is also encouraging to see the progressive operational stability following some unusually extended plant outages of last year."

He also assured, “Our parent cash flow and balance sheet continue to remain healthy to support our immediate and visible growth pipeline.”

Announcing its financial results for the six-month period ending June 30, 2023, Acwa Power said its operating income, before impairment, loss and other expenses, stood at SAR 1.289 billion ($343.7 million).

Higher power generation by plants that experienced extended shutdowns last year continued delivering better performance with mostly stabilized operations.

This, combined with new facilities coming online and beginning to contribute to the Company’s results, led to higher income including from operations and maintenance (O&M) fees.

In addition to two new financial closes—one PV project in Egypt and one Wind project in Uzbekistan— Acwa Power has also seen the successful closure of the $6.3 billion Neom Green Hydrogen Project’s financing, following which the project company, Neom Green Hydrogen Company, issued the final notice to proceed to Air Products, the EPC contractor of the project.

In the same period, the Company has signed three Power Purchase Agreements as part of the Public Investment Fund’s (PIF) renewable pipeline, adding 4.55GW of solar power capacity to its portfolio.

With this, Acwa Power’s total aggregate power capacity of the operational, under construction and advanced development projects, exceeds 50GW, with over 23GW, or 46% of the total, in renewables, which is very close to the Company’s 2030 target of a 50/50 portfolio between renewables and flexible generation.

IN mid-July 2023, the Company fully paid an annual dividend of SAR 606.8 million ($161.8 million) i.e. SAR 0.83 per share for 2022.



Saudi Arabia Among World's Top 10 Global Markets in Energy Storage

Through the National Renewable Energy Program, overseen by the Ministry of Energy, the Kingdom aims to achieve a storage capacity of up to 48 gigawatt-hours by 2030. (SPA)
Through the National Renewable Energy Program, overseen by the Ministry of Energy, the Kingdom aims to achieve a storage capacity of up to 48 gigawatt-hours by 2030. (SPA)
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Saudi Arabia Among World's Top 10 Global Markets in Energy Storage

Through the National Renewable Energy Program, overseen by the Ministry of Energy, the Kingdom aims to achieve a storage capacity of up to 48 gigawatt-hours by 2030. (SPA)
Through the National Renewable Energy Program, overseen by the Ministry of Energy, the Kingdom aims to achieve a storage capacity of up to 48 gigawatt-hours by 2030. (SPA)

Saudi Arabia has achieved a leading position among the top ten global markets in the field of battery energy storage, coinciding with the launch of the Bisha Project, which has a capacity of 2000 MWh and is one of the largest energy storage projects in the Middle East and Africa.

Through the National Renewable Energy Program, overseen by the Ministry of Energy, the Kingdom aims to achieve a storage capacity of up to 48 gigawatt-hours by 2030. So far, 26 gigawatt-hours of storage projects have been tendered, and they are at various stages of development.

These projects play a pivotal role in supporting the expansion of renewable energy, thereby helping achieve the targets of the national energy mix. The Kingdom aims for 50% of total electricity production to be generated by renewables by 2030, reported the Saudi Press Agency on Friday.

According to the ranking by Wood Mackenzie consultancy, which specializes in the energy sector, Saudi Arabia is at the forefront of emerging markets that are experiencing rapid growth in energy storage projects, amid expectations of the new storage capacities to further strengthen the Kingdom's position among the top ten global markets in this field over the next decade.

This growth aligns with the goals of the Saudi Vision 2030, which seeks to expand electricity production from renewable sources such as solar and wind energy.

The Kingdom plans to operate 8 GWh of energy storage projects by 2025, and 22 GWh by 2026, positioning itself as the third largest global market in energy storage projects, following China and the United States, based on the storage capacities announced to date.

The recently operational Bisha battery energy storage project features 488 advanced battery containers with a storage capacity of 500 MW for a duration of four hours.

The project facilitates battery charging during low-demand periods and discharging during peak times, ensuring backup power availability when necessary, improving the flexibility of electricity supply management, and promoting smart solutions for a more sustainable energy future.

The Kingdom's energy sector is undergoing a significant transformation that strengthens its leading position in the production and export of diverse energy types. By the end of 2024, the total capacity of renewable energy projects, across all stages of development, had reached 44.1 GW.

Energy storage plays a crucial role in enhancing the reliability of electricity supply, thereby improving the National Grid's capacity to deal with emergency situations and achieving strategic objectives for the advancement of the energy sector in the Kingdom.