
ACWA Power begins commercial operations at 3 solar plants in Saudi Arabia
ACWA Power said it received an initial commercial operation certificate for the Al Kahfah solar Independent Power Plant project in the Hail region, which has a capacity of 1,425 megawatts.
The company added that it also received the commercial operations certificate for 1,000 MW at the Al-Rass 2 solar PV plant in Qassim.
ACWA Power also obtained the second commercial operation certificate for the remaining 365.7 MW capacity in the SAAD 2 PV project in Riyadh, bringing its total operating capacity to 1,125 MW.
These developments align with Saudi Arabia's goals to generate clean energy, primarily using solar power.
The Kingdom plans to generate 58.7 GW of renewable energy by 2030, with 40 GW from solar PV. It also plans to generate 16 GW from wind energy and 2.7 GW from concentrated solar power.
This commitment is part of the broader National Renewable Energy Program strategy, aimed at diversifying Saudi Arabia's energy portfolio and reducing reliance on fossil fuels.
ACWA Power said the impact of these projects is expected to be reflected in the company's financial performance in the second half of this year.
The firm owns a 50.1 percent stake in the Al-Kahfah, Ar Rass 2, and SAAD 2 solar projects.
In July, a consortium led by ACWA Power signed agreements worth SR31 billion ($8.3 billion) to develop seven major solar and wind energy projects with a combined capacity of 15,000 MW in the Kingdom.
Five of the new projects are photovoltaic solar initiatives, including the Bisha Project in the Asir region and the Humaij Project in Madinah, each with a capacity of 3,000 MW.
The Khulis Project in Makkah will generate 2,000 MW, while the Afif 1 and Afif 2 projects located in the Riyadh region will add another 4,000 MW combined.
In addition, two wind energy projects will be developed in Riyadh, which include the 2000 MW Starah Project and the 1,000 MW Shaqra Project.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Arab News
3 hours ago
- Arab News
Trump blames renewable energy for rising electricity prices. Experts point elsewhere
WASHINGTON: With electricity prices rising at more than twice the rate of inflation, President Donald Trump has lashed out at renewable energy sources such as wind and solar power, blaming them for skyrocketing energy costs. Trump called wind and solar power 'THE SCAM OF THE CENTURY!' in a social media post and vowed not to approve wind or 'farmer destroying Solar' projects. 'The days of stupidity are over in the USA!!!' he wrote on his Truth Social site. Energy analysts say renewable sources have little to do with recent price hikes, which are based on increased demand, aging infrastructure and increasingly extreme weather events such as wildfires that are exacerbated by climate change. The rapid growth of cloud computing and artificial intelligence has fueled demand for energy-hungry data centers that need power to run servers, storage systems, networking equipment and cooling systems. Increased use of electric vehicles also has boosted demand, even as the Trump administration and congressional Republicans move to restrict tax credits and other incentives for EV purchases approved under the Biden administration. Natural gas prices, meanwhile, are rising sharply amid increased exports to Europe and other international customers. More than 40 percent of US electricity is generated by natural gas. Trump promised during the 2024 campaign to lower Americans' electric bills by 50 percent. Democrats have been quick to blame him for the price hikes, citing actions to hamstring clean energy in the sprawling tax-and-spending cut bill approved last month, as well as regulations since then to further restrict wind and solar power. Advocates say renewables provide the extra energy needed 'Now more than ever, we need more energy, not less, to meet our increased energy demand and power our grid. Instead of increasing our energy supply Donald Trump is taking a sledgehammer to the clean energy sector, killing jobs and projects,' said New Mexico Sen. Martin Heinrich, the top Democrat on the Senate Energy and Natural Resources Committee. The GOP bill will cost thousands of jobs and impose higher energy costs nationwide, Heinrich and other critics said. A report from Energy Innovation, a non-partisan think tank, found the GOP tax law will increase the average family's energy bill by $130 annually by 2030. 'By quickly phasing out technology-neutral clean energy tax credits and adding complex material sourcing requirements,' the tax law will 'significantly hamper the development of domestic electricity generation capacity,' the report said. Renewable advocates were more blunt. 'The real scam is blaming solar for fossil fuel price spikes,' the Solar Energy Industries Association said in response to Trump's post. 'Farmers, families, and businesses choose solar to save money, preserve land, and escape high costs of the old, dirty fuels being forced on them by this administration,' the group added. As technology improves, wind and solar offer some of the cheapest and fastest ways to provide electric power. More than 90 percent of new energy capacity that came online in the US in 2024 was clean energy, said Jason Grumet, CEO of the American Clean Power Association, another industry group. States with the highest share of clean energy production have seen prices decline in the past year, according to data from the US Energy Information Administration, while prices have gone up in states with the least renewable energy use. 'By slowing clean energy deployment, the Trump administration is directly fueling cost increases,' Grumet said 'Blocking cheap, clean energy while doubling down on outdated fossil fuels makes no economic or environmental sense,' added Ted Kelly, director of US clean energy for the Environmental Defense Fund, a nonprofit advocacy group. Partisanship anchors debate over rising energy prices Energy Secretary Chris Wright blamed rising prices on 'momentum' from Biden-era policies that backed renewable power over fossil fuel sources such as oil, coal and natural gas. 'That momentum is pushing prices up right now. And who's going to get blamed for it? We're going to get blamed because we're in office,' Wright told POLITICO during a visit to Iowa last week. About 60 percent of the state's electricity comes from wind. Not all the pushback comes from Democrats. Iowa Sen. Chuck Grassley, a Republican who backs wind power, has placed a hold on three Treasury nominees to ensure wind and solar have 'an appropriate glidepath for the orderly phase-out of the tax credits' approved in the 2022 climate law under former President Joe Biden. Grassley said he was encouraged by new Treasury guidance that limits tax credits for wind and solar projects but does not eliminate them. The guidance 'seems to offer a viable path forward for the wind and solar industries to continue to meet increased energy demand,' Grassley said in a statement. John Quigley, senior fellow at the Kleinman Center for Energy Policy at the University of Pennsylvania, said the Republican tax law will increase US power bills by slowing construction of solar, wind, and battery projects and could eliminate as many as 45,000 jobs by 2030. Trump administration polices that emphasize fossil fuels are 'an extremely backward force in this conversation,' Quigley said. 'Besides ceding the clean energy future to other nations, we are paying for fossil foolishness with more than money — with our health and with our safety. And our children will pay an even higher price.'


Arab News
4 hours ago
- Arab News
How Gulf states can develop data centers without straining scarce water resources
DUBAI: In a region long defined by oil wealth, a new resource rush is unfolding, not for petroleum, but for digital power. Across the Gulf, an explosion in artificial intelligence development and cloud infrastructure is placing a strain on another resource in even shorter supply — water. 'Data centres in the GCC strain scarce water resources, consuming 15 billion liters in Saudi Arabia alone in 2024,' Javier Alvarez, senior managing director of technology, media, and telecom at FTI Consulting, told Arab News. 'In a region reliant on desalination, this intensifies energy costs and marine ecosystem damage and without action, water competition could spark social tensions.' Over the next five years, data center capacity in the Gulf Cooperation Council area is expected to triple — from just over 1 gigawatt today to 3.3 GW by 2030 — a pace that outstrips the global average, according to FTI. These sprawling digital warehouses, often likened to the 'brains' of AI and the internet, are energy-intensive. But less widely known is their voracious appetite for water, a resource already stretched thin across the arid Gulf. In a region where summer temperatures regularly exceed 45 degrees centigrade, the job of cooling thousands of heat-belching servers requires vast amounts of water — often drawn from expensive, energy-intensive desalination plants. Preliminary research indicates that in Saudi Arabia alone, data centers could account for 87.52 billion liters — roughly 35,000 Olympic-sized swimming pools, or four percent of the country's current water output. Industry leaders and regional policymakers are racing to balance digital ambitions with sustainability concerns. But the question looms large over whether the Gulf's pursuit of AI supremacy could squeeze the peninsula dry. 'If unchecked, environmental harm risks undermining the GCC's sustainability goals, but proactive innovation can balance digital growth with social equity,' said Alvarez. There is hope, however, as some in the industry argue that the very tools driving the data boom — AI and smart systems — could also help solve the problems they have created. 'We don't have to choose between AI and sustainability,' Walid Sheta, president of the Middle East and Africa region at Schneider Electric, one of the companies at the forefront of developing more efficient data centers across the globe, told Arab News. Sheta said one of the most promising solutions is delivering a special coolant, similar to that used in car engines — usually a mix of water and glycerol or other hydrocarbon liquids — directly to the chips rather than relying on vast air-conditioning systems. The result, Sheta says, is dramatically higher thermal efficiency and significantly lower energy and water consumption. This sentiment was echoed by Alvarez, who said the technology was already proving its worth, pointing to projects by Khazna, Datavolt and Alfanar as regional examples where it was being put to work. 'Liquid cooling, championed by companies like Schneider Electric or Vertiv, slashes data center water use by up to 92 percent, vital for the GCC's arid climate,' he said. Nevertheless, Sheta admitted that cost, complexity, and speed of implementation remained major barriers. Liquid-cooling solutions require high initial capital expenditures for piping, advanced chips, and various other components. Still, Schneider says that over time, the savings in energy, which can be anywhere between 20 and 40 percent, primarily from the removal of chillers and server fans, make the solution cost-effective, especially for larger data centers. The firm's own analysis found that both air and liquid solutions were roughly the same in terms of capital expenditure, with air-cooled data centers costing $7.02 per watt and the liquid-cooled solution $6.98 per watt. 'Many operators are still focused on short-term returns,' said Sheta. 'But the long-term savings in water, energy, and operational resilience are substantial.' Alvarez also cautioned against assuming liquid cooling is a silver bullet, especially considering the unsustainable nature of procuring the coolants, which still usually come from oil derivatives. 'High upfront costs and specialized maintenance challenge smaller firms, risking economic disparity. And environmental concerns over cooling fluids also loom,' he said. For some, concerns over water scarcity are overstated, at least in Saudi Arabia, where large-scale desalination has become a core part of the national infrastructure. 'Water in Saudi Arabia is really just a cost factor,' Alexander Serac, a partner at global law firm Addleshaw Goddard based in Riyadh, who has consulted on major desalination projects in the region, told Arab News. Desalination, the process of converting seawater into potable water, provides up to 90 percent of the region's freshwater in some areas. Saudi Arabia leads the world in desalination capacity and has ambitious plans to expand further. However, the process is energy-intensive and produces saline waste, also known as brine, which can raise sea temperatures and increase water salinity when discharged. One study led by researchers at Khalifa University in Abu Dhabi estimated that a 50-fold increase in desalination by 2050 could raise temperatures in the Arabian Gulf by 0.6 C, which could damage marine ecosystems. Nevertheless, Serac believes Saudi Arabia is managing the risks through strong environmental protections and believes issues with brine waste could be resolved down the line with technology that would see the brine reused for mineral extraction and other uses. 'We take substantial effort to prepare ecological assessment reports for all of the projects we work on,' he said. 'These are governed by strong environmental regulations.' Serac added that the Kingdom's renewable energy investments are helping offset the environmental footprint of desalination, with some projects like the proposed 1.5 GW Datacom data center in Saudi Arabia's NEOM touted to run fully on renewables. 'The regulatory framework is very conducive,' he said. 'Talking to friends in Europe, they're jealous. There's land, there's capital, and there isn't too much red tape. 'I would say what makes this region special is really its potential access to huge amounts of renewable energy at the lowest global prices. It really makes it a perfect place for energy-intensive industries.' Google, which has announced plans to launch an AI and cloud hub in Dammam, eastern Saudi Arabia, told Arab News that it might consider using seawater, emphasizing that it takes local water scarcity into account before deciding whether to proceed with building its plants. OpenAI, one of the central players in the global AI boom, is still finalizing details for its 1 GW Stargate project in Abu Dhabi. But the company insists it is taking sustainability seriously. In a statement to Arab News, the firm pointed to an essay by OpenAI CEO Sam Altman, who argued that as data center production becomes more automated, the cost of intelligence — including its environmental cost — should decrease over time. 'People are often curious about how much energy a ChatGPT query uses; the average query uses about 0.34 watt-hours,' Altman wrote. 'It also uses about 0.000085 gallons of water; roughly 1/15th of a teaspoon.' Despite the exponential growth of AI queries and the mounting energy and water needs behind them, Schneider Electric's Sheta remains cautiously optimistic. 'Many facilities continue to rely on conventional cooling methods, and water efficiency is not yet a universal priority,' he said. 'That needs to change. The environmental cost of inaction is too high, and the opportunity to lead is too great. 'The technologies to reduce water use in data centers are not futuristic. They're here, they're proven, and they're ready to scale. What's holding us back is not innovation, but adoption.'


Argaam
4 hours ago
- Argaam
Commerce Ministry seeks public input on implementing regulations of Precious Metals Law
The Ministry of Commerce seeks public feedback on a draft of the implementing regulations for the Precious Metals and Gemstones Law through Istitlaa platform until Sept. 4. In a statement issued today, the ministry stated that the draft aims to align with recent amendments to the law by setting out regulatory provisions governing the trade and manufacturing of precious metals and gemstones, their products, as well as coated, plated, or inlaid items, in line with best practices. Under the regulations, no one may engage in the manufacturing of precious metals and gemstones without first obtaining an industrial license from the Ministry of Industry and Mineral Resources, in accordance with the Unified Industrial Regulatory Law of GCC and its executive regulations, along with any subsequent amendments. This is subject to the conditions and procedures set by the ministry. In addition, the regulations do not allow engaging in the sale of precious metals and gemstones, changing business locations, or ceasing operations without notifying the Ministry of Commerce. However, it allows sales through e-stores and self-service machines. For businesses engaged in repair, cleaning, welding, plating, or polishing of precious metal works, the activity must be included in the entity's commercial registration. The draft bans the sale, display, or possession for sale of any item unless it meets specific requirements, chiefly being stamped with the Kingdom's official hallmark or a registered trademark. Foreign hallmarks indicating the carat of imported precious metal items will be accepted provided they match one of the official standards. Antique items over 100 years old are exempt.