Bringing Clean, Affordable Water, Power to Make Great Lives Possible

By: Marco Arcelli – CEO of ACWA Power

Few people today would consider Saudi Arabia the leading exporter of affordable, green power and clean water globally, and yet this is exactly what is taking place thanks to ACWA Power, the Riyadh-based power and water giant that is present in 15 countries around the world.

ACWA Power as the largest desalination companies in the world, serving the water demand of about a quarter of the population in four countries, is one of the largest private investors in power generation in fast growing countries in Africa and Central Asia, and the first mover in green molecules to decarbonize at affordable cost the hard to abate sectors has almost doubled its size in the last three years to 117 Bn USD of assets under management. The company signed last week contracts in Saudi Arabia to supply 15 GW of solar and wind power, equivalent to about half of the peak demand of New York State.

ACWA Power is the leader in the three emerging growth sectors of the next decade, clean water, affordable power and green molecules. We scout the world to find the most innovative technologies and financial solutions to bring them together in developing economies around the world, that will be home to over 80% of the total investments in power globally over the next decade. Through the ingenuity of our people, over the past 20 years we have increased efficiency by over 80% at our solar and water desalination plants, achieving the lowest cost around the world in both technologies. Over the next decade, ACWA Power aims to more than double its assets, with a target of reaching $250 billion by 2030.

This ambitious goal is fueled by our relentless commitment to provide affordable, clean energy and water solutions in all the countries where we operate. In Saudi Arabia, which is undergoing one of the world’s largest energy transition programs, with over 20 GW of renewables and 7 GW of gas-fired plants per year over the next years, as well as in our core markets in fast-growing economies from Morocco to Egypt, from the United Arab Emirates to Turkey and beyond.

Since joining ACWA Power in early 2023, I was privileged to lead it to bring nearly 11.7 GW of power generation capacity and 1.1 million m³/day of desalination capacity into operation, enough to supply 4.2 million people in water. In the same period, we have secured $15.6 billion in financing from the leading institutions around the world, from the USA, Europe, Japan and the Middle East. We have signed contracts to supply over 49.6 GW of power capacity, and expanded our desalinated water capacity by 4.1 million m³/day, a 60% growth, solidifying our position as a leader in the renewable energy and water desalination sectors.

A key milestone in this journey was our latest announcement to develop 15 GW of renewable energy projects across Saudi Arabia, with an investment cost over $8.3 billion. These seven projects, which include 12 GW of solar and 3 GW of wind, are an essential part of the National Renewable Energy Programme (NREP) and reflect ACWA Power’s commitment to develop the PIF Program of 70% of Saudi Arabia’s renewable energy target capacity by 2030.

These investments not only drive the Kingdom’s energy transition but also reinforce ACWA Power’s global leadership in sustainable energy. To support our ambition, we have successfully raised $1.9 billion equity capital via rights issue, one of the largest in Saudi Capital Market history, with an overall subscription of 96.2%, and a 6x over-subscription in the rump placement with an overwhelming majority going to international investors. We are grateful for our shareholders’ as well as other investors who participated in the rump offering for their confidence and support that enables us to further expand and accelerate the execution of our projects. We brought the best of the world to Saudi Arabia to deliver competitive tariffs around the world, and from there we are now turning Saudi Arabia into the largest exporter of desalination and low carbon technologies globally.

The growth of ACWA Power is not only about increasing our footprint but also about making a meaningful impact on the communities we serve on the environment and on the economies of the countries where we operate. Affordable, clean power and water make economies stronger, and bring stability around the world. In a globe riddled by uncertainty and fear, we aim to bring stability and hope for a better future: economic growth in the countries where we operate has recently outpaced that of developed OECD countries by 2-3 hundred basis points of more in all recent years. We believe that sustainable growth is the key to the future, and that’s why we are committed to delivering on our vision to create value for all stakeholders—investors, communities, business partners and governments alike.

The investments we are making today are laying the groundwork for a future where renewable energy is the backbone of the global economy. Not because of ideology but because it is the cheapest, fastest, simplest technology to roll out to support growth in developing markets. Not through subsidies, but through the constant search for better technologies, suppliers and partners. We are working closely with international investors, governments, and financial institutions to build a resilient energy ecosystem that can withstand the challenges of the future.

Our commitment to bring affordable, clean power and water is not just a strategic move; it’s a necessity for the future of our planet. As the world grapples with the need to elevate living standards while mitigating the effects of climate change, ACWA Power is uniquely positioned to provide the solutions that the world so urgently needs. Our focus on scaling renewable energy projects, developing green hydrogen, and leading the charge in water desalination aligns perfectly with the global demand for sustainable solutions.

At ACWA Power, we are building on a foundation of trust with our shareholders and the wider stakeholders, who share our commitment to a sustainable future. This trust is a powerful motivator as we continue to push forward with our vision. With each project we undertake, we are not just meeting the energy needs of today—we are creating the infrastructure, the technologies, and the partnerships that will power tomorrow’s world. The future is full of promise, and together with our investors, partners, and stakeholders, we are poised to lead the way into a cleaner, greener, and more sustainable future.