From solar deserts to hydrogen hubs, the Riyadh-based utility is central to the Kingdom’s green transition
In the vast expanse of the Arabian desert, Saudi Arabia’s transformation is already underway. But this isn’t about oil rigs or gas flares. This time, it’s about solar panels, wind turbines—and a staggering $250 billion pledge to reshape the future.
At the center of that ambition stands ACWA Power, the homegrown energy company tasked with leading most of the Kingdom’s green transition under the Vision 2030 blueprint. And if you think this is just another ESG PR stunt, think again. The numbers—and the urgency—are real.
Big Numbers, Bigger Promises
ACWA Power, headquartered in Riyadh and listed on the Tadawul, isn’t your average utility firm anymore.
In 2024, the company clocked $1.6 billion in revenue, with an active project portfolio worth billions more. Across 109 projects worldwide, ACWA commands over 94 gigawatts in total capacity, with more than half—52 GW—coming from renewable sources like solar PV, wind, and CSP (concentrated solar power).
But here’s where it gets interesting:
ACWA Power isn’t just focused on electricity anymore. It’s making a bold leap into green hydrogen, aiming to build one of the largest production ecosystems in the world.
And that’s not by chance. The Saudi Public Investment Fund (PIF) has entrusted ACWA with leading 70% of the Kingdom’s renewable energy program. That’s a staggering mandate.
Why the Rush? It’s the “Quadrilemma”
ACWA Power CEO Marco Arcelli doesn’t mince words when asked why this needs to move fast.
“If the transition comes in 2060, it’s too late,” he said recently.
He frames the challenge not as a trilemma—sustainability, affordability, and security—but as a quadrilemma. The fourth piece? Speed.
For Arcelli and ACWA Power, it’s not enough to promise clean energy. It has to be built now, at scale, and without compromising on price or reliability.
That sense of urgency is baked into everything from project timelines to technology bets.
Planting Panels, Not Just Trees
As part of Vision 2030, Saudi Arabia wants to reduce oil dependency, fight desertification, and reshape its urban fabric.
Yes, that includes planting one million trees to mitigate record-breaking heat that often crosses 55°C in the summer.
But the bigger bet lies in how the country powers itself—and exports that power. And that’s where ACWA Power steps in.
Recent major projects led by the company include:
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The Neom Green Hydrogen Project, expected to start producing hydrogen by 2026
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Massive PV solar farms in Rabigh and Sudair
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Wind energy expansion in northwest Saudi Arabia
Each of these efforts contributes to what Arcelli calls a “just, fast, and scalable” energy transition.
Green Hydrogen: A High-Stakes Gamble
ACWA Power was the first Saudi company to invest heavily in green hydrogen. That early bet is beginning to pay off as global demand for clean fuels grows—especially in Europe and East Asia.
Saudi Arabia wants to become a global hydrogen export hub, and ACWA is laying the groundwork with help from international partners and financial backing from the PIF.
Why does this matter?
Because:
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Hydrogen can replace fossil fuels in heavy industry and shipping
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It’s essential for deep decarbonization
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And Saudi Arabia has abundant sun, space, and capital to produce it cheaply
ACWA’s hydrogen plants are being built where the sun doesn’t just shine—it scorches. That means more solar energy, and fewer cloudy days ruining efficiency.
One sentence says it all: they’re not just exporting oil anymore—they’re exporting sun.
The Numbers Behind the Mission
If you’re wondering how all this translates into tangible progress, here’s a quick breakdown:
| Metric | Value (2024–25) |
|---|---|
| Total Project Capacity | 94 GW |
| Renewable Energy Share | 52 GW |
| Projects Under Construction | 20+ major utility-scale projects |
| Annual Revenue | $1.6 billion |
| Green Hydrogen Production Goal | 650 tonnes/day by 2026 (Neom) |
| Trees to be Planted (Vision 2030) | 1 million |
| Total Investment (by 2030) | $250 billion |
And those investments aren’t just staying in Saudi Arabia. ACWA Power is active across Africa, Central Asia, and Southeast Asia as it grows its international footprint.
It’s Not Just About Energy
ACWA Power’s ambitions stretch beyond electrons and hydrogen molecules.
The firm is doubling down on water desalination, using renewable energy to power high-efficiency plants across the Middle East. This is especially crucial as freshwater scarcity becomes more urgent across the region.
It’s also investing in digital transformation—including AI tools for grid management and predictive maintenance. These technologies cut costs, reduce outages, and accelerate deployment times.
The company is doing all this while maintaining one foot in the traditional energy sector—hedging against the volatility of the renewables market.
That kind of balancing act isn’t easy. But it’s necessary.
Betting the Future on Scale
Saudi Arabia is building more than just a low-carbon economy. It’s building leverage—political, economic, and environmental.
And ACWA Power is the Kingdom’s strongest card in that game.
Whether it’s the clean megawatts from solar, the blueprints for mega hydrogen plants, or the billions pouring into new infrastructure, this is more than just green ambition. It’s strategy at scale.
