Saudi Arabia’s ACWA Power has finalised SR12.8 billion ($3.4 billion) in financing to develop two gas-fired power stations, strengthening the Kingdom’s electricity generation capacity as demand continues to climb.

The projects, Rumah-1 in Riyadh and Al-Nairiyah-1 in the Eastern Province, will each generate 1,800 megawatts, together supplying 3.6 gigawatts to the national grid.

According to a filing on Tadawul, ACWA Power will retain a 35 percent shareholding in the ventures. The same stake will be held by the Saudi Electricity Co., while Korea Electric Power Corp. will own the remaining 30 percent.

The financial close was achieved on 21 August, following an initial announcement in July. The deal covers a 28-year debt package arranged by a syndicate of lenders, including the Export-Import Bank of Korea, Saudi National Bank, Saudi Investment Bank, Banque Saudi Fransi, Standard Chartered Bank, Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China, and Arab Petroleum Investments Corporation.

The company stated its guarantees are limited to an equity bridge loan, early generation revenues, standby equity, and a reserve account.

This latest financing adds to ACWA Power’s expanding portfolio, which aligns with Saudi Arabia’s Vision 2030 strategy to diversify its energy mix. The company is mandated by the Public Investment Fund to deliver around 70 percent of the Kingdom’s renewable capacity as part of the National Renewable Energy Programme, which seeks to generate 58.7 GW from clean sources by 2030.

In recent months, ACWA Power has commissioned nearly 2.8 GW of solar projects across the Al-Kahfah, Al-Rass 2, and SAAD 2 plants. It is also advancing the $8.4 billion green hydrogen project in Neom, designed to produce 600 tonnes of hydrogen and 1.2 million tonnes of green ammonia annually.

In July, the company signed $8.3 billion in agreements to build seven solar and wind projects totalling 15 GW, supporting Saudi Arabia’s target to secure 50 percent of its electricity from renewables by 2030.

Beyond the Kingdom, ACWA Power is pursuing international growth through acquisitions and partnerships. Earlier this year, it reached a deal to acquire Engie’s $693 million portfolio in Kuwait and Bahrain, and in July, signed agreements with European firms TotalEnergies and Siemens Energy to strengthen green energy exports to Europe.

Investor sentiment has been positive, with ACWA Power shares climbing 2.21 percent to SR231.20 by 12:08 p.m. on Sunday, following the announcement.