Eversheds Sutherland advises on 3 Solar PV IPP Projects in KSA

AlDhabaan & Partners, in association with Eversheds Sutherland, have advised the Saudi Power Procurement Company (SPPC) on the successful commercial close of three major solar PV Independent Power Producer (IPP) projects in Saudi Arabia. The projects, namely Ar Rass 2, Saad 2, and Al Kahfa, mark a significant step forward in the country’s renewable energy sector. 

The commercial agreements, known as Power Purchase Agreements (PPAs), were signed by a consortium comprising ACWA Power and Badeel, a wholly-owned subsidiary of the Public Investment Fund (PIF). These agreements pave the way for the development and operation of the three solar PV projects, which collectively have a remarkable capacity of 4,550MW and an estimated value of US$3.25 billion. 

The strategic locations of these solar PV projects in the central and northern regions of Saudi Arabia will enable them to power approximately 750,000 residential units. Their development aligns with the objectives of the National Renewable Energy Program (NREP), spearheaded by the Ministry of Energy (MoEnergy), with a mandate for PIF to develop 70% of the NREP’s target capacity. 

AlDhabaan & Partners in association with Eversheds Sutherland and Eversheds Sutherland advised on all legal aspects of the procurement process including drafting and advising on the internal compliance documentation; drafting and reviewing responses to the Statement of Qualifications; drafting the project documents and other related requests for proposal documentation; reviewing of submissions and negotiation of the project agreements; and achievement of commercial close. 

The Eversheds Sutherland team was led by partner & head of projects – Middle East, Ashley Halewood (pictured) with support from senior associate Adite Aloke, along with partners Abdulatif AlHerish and Mohammed AlAhmad, and associates Abdulrahman Alrashid and Saed Obeidat of AlDhabaan & Partners in association with Eversheds Sutherland.