Saudi Firm ACWA unable to sign Pakistan Solar Projects amid security concerns

Sources reveal that Pakistan’s Ambassador in Riyadh conducted a meeting recently with ACWA Power’s Chairman, Muhammad Abunayyan, in the presence of the Saudi Ambassador of Pakistan.

ACWA Power, an investor, and operator in power generation and water desalination, features a global presence in 12 countries.

Their power sector portfolio surpasses $74.8 billion, incorporating a capacity of over 50 GW of power and 7.6 million m3/day of desalinated water.

According to Pakistan’s Ambassador, ACWA Power expressed an interest in investing in Pakistan’s solar sector. However, it faced hurdles, primarily security concerns and the absence of vital facilitating factors.

These factors include the lack of a base tariff, a legal framework for government-to-government collaboration, available land, financial capacity for power payment, and challenges related to grid connectivity.

The Ministry of Foreign Affairs emphasizes the strategic importance of this venture for the Saudi government. Crown Prince MBS himself expressed interest during a meeting with former PM Shahbaz Sharif in October 2022.

Chairman Abunayyan agrees to an exploratory visit to Pakistan, responding to the Ambassador’s request for focused meetings and briefings at the Ministry of Energy. Advance preparations are suggested for a successful visit.

K-Electric expresses interest in ACWA Power’s 3,000 MW renewable energy (RE) projects projects. KE, the sole private utility in Pakistan, serves over 3.4 million customers in Karachi. CEO Syed Moonis Abdullah Alvi sees ACWA Power as a key partner for large-scale RE projects.

ACWA Power, a global investment company, is ready to collaborate with KE to accelerate substantial RE projects in Pakistan. KE’s CEO also recognizes ACWA Power as a valuable partner for expanding its RE footprint.

ACWA Power’s previous interest faced many challenges, but KE is much more optimistic about convincing them to reconsider and become a partner in developing RE projects in Pakistan.

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