Saudi Arabia’s electricity and desalination firm ACWA Power has set up a new companyto compile its existing renewable-energy portfolio.
The new company, ACWA Power RewnewCo, will drive the firm's expansion in emerging market renewables.
Chris Ehlers, currently COO of renewables at ACWA Power, has been appointed CEO of the new firm.
ACWA did not say where the new company will be based.
Ehlers said the company currently generates more than 1GW of renewable power in markets which have an energy gap.
“The reputation we have established in renewable energy has enabled us to also secure a high quality and near term pipeline of opportunities using a diverse technology mix spanning solar PV and CSP to wind," Ehlers said.
"Given our commitment to RE and the ambition of the region in which we are focused, I see enormous potential to increase our renewables portfolio.”
According to the company, in 2015, about $266bn was invested globally in renewable power and it was more than double the investment in new coal and gas fired plants, which stood at $130bn.
However, when compared to legacy investment in conventional power generation, renewables accounted for just 10% of world electricity generation last year.
This is an indication of great potential and clear opportunity of investment in renewables, the company said.
ACWA Power president & CEO Paddy Padmanathan said: “There are compelling reasons today for the growth potential in renewables in ACWA Power’s target markets.
“With rapid advances in technology and efficiency in manufacturing and construction driving down capital cost, with the quality of RE resources available and the low interest rate environment, RE is the most competitive solution for the segment of energy we consume when the sun is shining or the wind is blowing even when compared to the alternative where fossil fuel is subsidized.
At present, ACWA Power has its presence in 11 countries in the Middle East, North Africa, Turkey, Southern Africa and South East Asia regions.
It has a renewable portfolio of 9 sites which include wind power, photovoltaics and concentrated solar panels (thermal) at locations in Jordon, Morocco, South Africa and United Arab Emirates. The total capacity of renewables is 1.16GW with an investment of about $4.8bn.
Image: Saudi-based ACWA Power to start a new renewables subsidiary. Photo: Courtesy of ACWA Power.