Silk Road Fund takes 49% in ACWA Power renewable energy platform
Both organisations complete partnership in ACWA Power RenewCo that owns a number of the firm's renewable energy projects
Saudi Arabia-based developer, owner, and operator of power generation and water desalination plants, ACWA Power has completed the transaction with Silk Road Fund, with the Chienese investment fund being introduced as a partner with 49% stake in ACWA Power’s renewable energy platform.
ACWA Power Renewable Energy Holding — also referred to ACWA Power RenewCo — owns a number of its existing renewable energy projects.
The renewable energy platform capitalises on the rapidly growing potential for renewable energy in emerging markets.
Currently, it owns ACWA Power’s concentrated solar power (CSP), photovoltaic (PV) solar, and wind assets across the UAE, South Africa, Jordan, Egypt, and Morocco, which together has an aggregate power capacity of 1,668MW.
Speaking about the deal, CEO of ACWA Power, Paddy Padmanathan, said: “Our partnership with the Silk Road Fund is testament to the robust relations between Saudi Arabia and China.”
Padmanathan added that the collaboration with Silk Road Fund will improve ACWA Power’s “ambitious growth plans in the renewables sector in MENA, Africa, Asia, and Central Asia”.
Meanwhile, chief investment officer of ACWA Power, Ranjit Nanda, said that introducing Silk Road Fund as a partner is “a strategic step” for the firm.
It supports the economic transformation in accordance with the Belt and Road initiative as well as Saudi Arabia’s Vision 2030.
“This partnership reaffirms ACWA Power’s strong commitment to contributing to the green development of the regions with its reliable financial stability, cementing the company’s position as an attractive investment partner to stakeholders, locally and globally,” Nanda added.
ACWA Power and Silk Road Fund have previously invested in two flagship UAE-based projects, including the 2,400MW Hassyan Clean Coal Power Plant; and the 950MW Phase 4 of MBR SOlar Park that will fulfill power needs of 32,000 homes.