Acwa Power looks to boost investments in Saudi market

Saudi-based Acwa Power seeks to acquire one or two bundles of power generation assets from Saudi Electricity Co. (SEC), as it expects to become a major investor in its home market, Reuters reported, citing Thamer al-Sharhan, the Saudi firm’s managing director.

Acwa Power also plans to launch an initial public offering late next year, said al-Sharhan.

"We expect the request for proposals to be out in mid-2018 if SEC is serious about privatizing the first bundle," al-Sharhan added.

Awarding contracts will take time, unless the energy ministry expedites the process in the Saudi utility provider, he noted.

SEC's privatization plans are split into four generation bundles at a total capacity of 60,000 MW with an asset value of SAR 100 billion.

"We aspire to have at least one (15,000 MW) or two bundles", al-Sharhan stated.

Asked if Acwa Power will team up with an international or local company for the bidding, Sharhan said the terms of the tender remain unclear.

As for the price, Sharhan added that "If the bundle price is high, the tariff becomes higher, there must be balance between the assets' value and the value of the tariffs”.

Acwa Power is bidding for number renewable projects in Saudi Arabia that will be offered for sale between now and until 2020.

The power sector has around 60,000 MW of brownfield projects and 13,450 MW in greenfield projects including renewable in the pipeline to 2020.