Acwa Power subsidiary Layla Solar Energy Company has inked a power purchase agreement for a solar PV plant that is being developed in Saudi Arabia’s Central Region at a cost of $107mn. The agreement with Saudi Power Procurement Company (SPPC) is valid for 30 years.

In its filing to the Saudi bourse Tadawul, Acwa Power noted the agreement will see the development, construction, and operation of a 91MW project at a major site within Al Aflaj governorate of Riyadh.

Earlier, the Saudi utility company emerged as the preferred bidder for the Layla PV project, which was tendered as part of round three of the National Renewable Energy Program by the Ministry of Energy. It had submitted the lowest bid of SR0.112/ kilowatt-hour.

Acwa Power said it will have a 40.1% stake in the strategic solar project, with the financial impact of the contracted revenues expected once the project began commercial operations in Q1, 2024.

In April 2022, Acwa Power announced a $900mn EPC contract win for a Neom Green Hydrogen Project, and in March 2022, Acwa Power and SPPC signed a deal to develop a 700MW solar project. In the same month, Acwa Power also broke ground on 100MW wind facility in Uzbekistan.