A Bold Step Toward Saudi Arabia’s Renewable Future: Gibson Dunn Guides Landmark Solar Project Financing
In a major leap for clean energy investment, Gibson Dunn has played a pivotal role in securing financing for five large-scale solar photovoltaic projects in Saudi Arabia—together boasting an impressive 12,000 MW total capacity. The law firm advised a consortium of initial mandated lead arrangers, senior and equity bridge lenders, agency banks, and hedge providers on the transaction, which involves ACWA Power, Badeel (a subsidiary of the Public Investment Fund), and Saudi Aramco.
But here’s where it gets truly transformative: these solar projects aren’t just isolated investments. They represent a cornerstone of Saudi Arabia’s sweeping vision for energy transition and grid decarbonization, supplying clean, renewable electricity to the Saudi Power Procurement Company under long-term power purchase agreements. The official signing of the financing documents took place at FII9, signaling strong institutional backing and international confidence in the Kingdom’s green energy trajectory.
This portfolio stands as a key pillar of the National Renewable Energy Program, spearheaded by the Ministry of Energy, and aligns with the Public Investment Fund’s (PIF) ambitious pledge to develop 70% of Saudi Arabia’s renewable energy capacity by 2030. It’s a bold target—one that highlights the Kingdom’s determination to balance rapid economic growth with sustainability.
And this is the part most people miss: beyond the environmental milestone, this financing achievement reflects the robust depth of the project finance market and the strategic influence of global financial institutions that are betting on Saudi Arabia’s clean energy future. In a world where climate goals often clash with economic interests, this deal suggests that large-scale collaboration between governments, investors, and private entities can, in fact, drive meaningful change.
The Gibson Dunn advisory team was led by partner Ben Shorten, alongside partners Mahmoud Abdel-Baky, Laleh Shahabi, and Samuel Ogunlaja. Supporting them were of counsels Claude Jiang and U-Shaun Lim, and associates Gabriel Opris, Andy Sears-Black, John Cheah, Christina Wenzel, Charles Kim, Jun An Chee, Hadeel Tayeb, and Findlay Thompson.
This milestone not only reinforces Saudi Arabia’s leadership in the global energy transition but also poses a question worth debating: Can such megaprojects truly set a precedent for sustainable energy finance worldwide—or are they simply a first step in a much longer journey? What’s your take—ambitious progress or cautious optimism?
