Saudi ACWA Power Sells Stake to China Southern Power Grid International
In a groundbreaking move, Saudi utility firm ACWA Power has finalized deals to sell 35 percent of its stake in two subsidiaries to China Southern Power Grid International for an impressive SR595.9 million ($158.87 million).
Strategic Collaboration for Sustainable Energy Solutions
The sale marks a significant milestone for ACWA Power, as they announced the closing of the sale and purchase agreement for their shareholding in ACWA Power Bash Wind Project Holding Co. and ACWA Power Uzbekistan Wind Project Holding Co.
CEO Marco Arcelli expressed pride in the strategic collaboration with China Southern Power Grid International, emphasizing their commitment to sustainable energy solutions.
Expanding Footprint in Renewable Energy Development
ACWA Power has been actively pursuing renewable energy development goals in various countries to expand its footprint and contribute to global sustainable energy solutions.
Capital Recycling Strategy and Business Model
The sale is part of ACWA Power’s capital recycling strategy, complementing their business model to partner with robust and reputable equity partners.
Major Projects in Uzbekistan
ACWA Power is developing the Bash and Dzhankeldy wind farms in Uzbekistan, aiming to collectively generate 1 gigawatt of renewable energy. The projects, under a 25-year power purchase agreement, have an estimated total investment cost of SR5.1 billion during construction.
Strengthening Global Presence and Industry Ties
The agreement in relation to the wind projects in Uzbekistan not only enhances ACWA Power’s global presence but also strengthens ties between industry leaders from different regions.
Driving Innovation and Progress in Renewable Energy Sector
The historic partnership between ACWA Power and China Southern Power Grid in Central Asia underscores their commitment to driving innovation and progress in the renewable energy sector.
Focus on Developing Clean Energy Projects
The deal follows ACWA Power’s memorandums of understanding with nine Chinese entities at the Riyadh Arab-China Summit, focusing on developing global clean energy projects in Saudi Arabia and countries of the Belt and Road Initiative.
Uzbekistan: Key Market for ACWA Power
Uzbekistan represents ACWA Power’s second-largest market in terms of total investments, after its primary market in the Kingdom.