Acwa announces temporary output limits at two Saudi solar plants

06/04/2026 05:31 AST

Global utility major Acwa Power has announced that two of its solar independent power producer (IPP) plants in Saudi Arabia have been subject to temporary dispatch limitations following instructions from the grid operator, citing concerns over reactive power fluctuations affecting grid stability.

The project firms dispute the allegations and are conducting technical assessments, including independent third-party reviews, while coordinating with authorities to restore full operations, said Acwa Power in its filing to Saudi bourse Tadawul.

The 1,425MW Al Kahfah solar plant, which began commercial operations in November last year, has faced dispatch restrictions since December 12, with partial dispatch allowed since February 11 this year.

The accumulated revenue under dispute with the principal buyer stood at about SAR95 million ($25.3 million) as of the end of March.

The 2,000MW Ar Rass 2 solar plant, which received its initial commercial operation certificate in September 2025, has been under dispatch limitations since January 16, with partial dispatch permitted since March 8

The disputed revenue for the project is estimated at around SAR73 million as of end-March.

Both project companies have challenged the matter and are currently conducting detailed technical assessments, including independent third-party analysis, and coordinating with the relevant authorities to enable full restoration of plants operations, said the statement.

Both companies have reserved all of their rights under the relevant project agreements and have issued deemed energy invoices in accordance with the terms of those agreements, it added.

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