Silk Road Fund to buy 49% of ACWA’s renewable unit 

24 June 2019 - 12:00 am UTC

China’s Silk Road Fund has agreed to acquire a 49% stake in Saudi Arabia’s ACWA Power Renewable Energy Holding (ACWA Power RenewCo).

The USD 40bn fund sovereign wealth fund has signed an agreement with ACWA Power to invest in the renewable power developer, which owns a number of existing projects across the Middle East and Africa, according to an ACWA press release yesterday. It did not reveal the value of the deal.

ACWA Power RenewCo will own ACWA Power’s CSP, PV and wind assets across the United Arab Emirates, South Africa, Jordan, Egypt and Morocco with a total capacity of 1.668GW.

“ACWA Power and Silk Road Fund’s further collaboration is a mirror image of the robust and strategic ties between Saudi Arabia and China that is strengthened year after year,” the Saudi Arabian company said.

Silk Road Fund’s introduction as a new investor will help bring in expertise and investment to ACWA’s portfolio of projects, said ACWA President and Chief Executive Paddy Padmanathan.

The tie-up will help the Saudi Arabian renewable and water company better serve the economic transformation envisioned by the Belt and Road Initiative as well as Saudi Arabia’s Vision 2030, according to Chief Investment Officer Rajit Nanda. Vision 2030 sets a target for the kingdom to generate 9.5GW of renewable energy by 2030.

ACWA Power and Silk Road Fund have co-invested in two UAE-based projects – the 2.4GW Hassyan clean coal power plant and the 950MW Hybrid CSP and PV fourth phase of MBR Solar Park. 

The new pact announced yesterday follows the Beijing-based fund’s acquisition of a 24.1% stake in a USD 3.9bn concentrated solar power (CSP) project in the UAE in July 2018. The ​​​​​ (700MW) project in Dubai was co-developed by ACWA (75%) and China’s Shanghai Electric (25%).

In 2016, the Silk Road Fund signed its first partnership deal with ACWA and the Dubai Electricity and Water Authority that saw the trio develop the Hassyan coal-fired power plant in Dubai.​​​​​​

 

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