Saudi Renewable Energy IPP Deals: Structure Report

Saudi Arabia’s recent renewables pipeline has been defined by large, utility-scale projects and sequential procurement rounds. In 2025, the country added around 7.8 GW of solar, and three projects belonging to Riyadh-based developer ACWA Power accounted for 2.79 GW of new operational capacity. That operating base matters for transaction design. When buyers pursue an acquisition or minority stake, commissioned assets can support clearer downside protection than purely development-stage bets, while still leaving room to recycle capital into the next wave of awarded capacity.

Procurement outcomes also shape the risk profile buyers inherit. The sixth phase of Saudi Arabia’s National Renewable Energy Program (NREP) concluded with 3 GW of solar awarded, including a project won at the second-lowest levelized cost of electricity for solar energy in history. Separately, Saudi Power Procurement Company (the principal buyer) awarded five projects in the sixth phase with a total capacity of 4.5 GW and an estimated investment of USD 2.4 billion (SAR 9 billion). In wind, the Dawadmi Wind IPP Plant was awarded at 1.5 GW with an LCOE of 1.33803 US cents/kWh, described by Saudi Arabia as a new world record for the lowest LCOE of wind power generation. These pricing signals can influence how purchase price adjustments, earn-outs, and debt sizing are set in an acquisition.

How Deal Structuring Follows the NREP Clock

Saudi Arabia’s NREP calendar creates natural “deal windows” that align with permitting, financing, construction, and commissioning milestones. The seventh round has already kicked off, covering 3.1 GW across four solar projects. For investors, one practical approach is to target stakes at points where the project’s pathway is de-risked by award status and counterparties, but before the full value uplift of operations is realized. That helps explain why minority stakes can be structured with step-in rights, staged payments, or conditions tied to progress toward commercial operation—especially when the award pace is fast and the market is absorbing multiple gigawatt-scale packages at once.

Longer-range outlooks add another lens for structuring acquisitions into portfolios rather than single assets. GlobalData forecasts annual solar additions between 12 GW and 14 GW for 2028 to 2035, which would take cumulative solar capacity past 50 GW in 2029 and to 67.2 GW by the end of the decade. The same trajectory would see the 100 GW threshold surpassed in 2033, growing to 129.7 GW by 2035. Yet GlobalData also notes this trajectory falls behind the pace required to reach a target of 130 GW of renewable power capacity by 2030 under the most recent Saudi Arabia Vision 2030, implying the country would need to add over 23 GW of renewables annually. For buyers, that gap can translate into more rounds, more refinancing events, and more opportunities to consolidate operating stakes.

In practice, structuring for Saudi renewable energy IPP deals often comes down to matching capital to a project’s lifecycle and auction economics. Awarded projects with headline-low LCOEs can carry tight margins, so governance terms and performance protections may matter as much as the headline valuation. Meanwhile, operating capacity—such as the 2.79 GW of ACWA Power projects that came online in 2025—can anchor portfolio transactions that balance cash-yielding assets with awarded-but-not-yet-operational projects. As NREP rounds continue to roll, acquisitions and stakes that are built for repeatability—across multiple awarded tranches—can become a competitive advantage.

How much solar did Saudi Arabia add in 2025, and why does it matter for IPP stakes?

Saudi Arabia added around 7.8 GW of solar in 2025. More operating capacity can support clearer risk allocation when investors buy stakes in IPPs.

What did NREP Phase 6 award, and what were the headline project figures?

NREP Phase 6 awarded 3 GW of solar. Saudi Power Procurement Company also awarded five projects totaling 4.5 GW with an estimated investment of USD 2.4 billion (SAR 9 billion).

What is the capacity and quoted LCOE for the Dawadmi Wind IPP Plant award?

The Dawadmi Wind IPP Plant was awarded at 1.5 GW with an LCOE of 1.33803 US cents/kWh. Saudi Arabia described it as a new world record for the lowest LCOE of wind power generation.

How much capacity is included in Saudi Arabia’s NREP Round 7 kickoff?

The seventh round has kicked off with 3.1 GW across four solar projects. That timing can shape when investors prefer to enter via minority stakes or acquisitions.

What does GlobalData project for Saudi solar additions and cumulative capacity through 2035?

GlobalData forecasts annual solar additions between 12 GW and 14 GW from 2028 to 2035, taking cumulative solar capacity past 50 GW in 2029 and to 67.2 GW by the end of the decade, then to 129.7 GW by 2035.

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