ACWA Power`s Collaboration with China`s Belt and Road Initiative: Global Growth or Strategic Dependence?

Case Code: BSTR699
Case Length: 14 Pages
Period: 2010-2024
Pub Date: 2025
Teaching Note: Available

Price: Rs.400
Organization : ACWA Power
Industry : Energy
Countries : Saudi Arabia
Themes: Corporate Strategy, Growth Strategy International Business,Strategic Alliances

Abstract Case Intro 1 Case Intro 2 Excerpts

Excerpts

Moving Into International Markets

Beginning in 2011, ACWA Power made an effort to expand internationally through value-adding acquisitions in thriving markets. The company announced its entry into new markets after it successfully finalized the acquisition of Central Electricity Generating Company (CEGCO) in Jordan. Later in the year, ACWA Power increased its footprint in the global power production scene by signing a joint development agreement for the Kirikkale CCGT IPP in Turkey. In addition, 2012..

Entering the Renewable Energy Segment

In January 2013, in response to the first-ever utility-scale renewable energy tender launched in Saudi Arabia by the Municipality of Mecca, ACWA Power offered the lowest tariff for generating photovoltaic energy at SAR 0.45 per kWh. To deliver this price using oil as fuel, 3,400 barrels of oil would have been required daily for the next 25 years at a price of SAR 165 per barrel — a massive subsidy compared to the world market oil price of SAR 338-375 per barrel. ACWA Power led the..

Leveraging The China Belt And Road Initiative (BRI)

ACWA Power had a long-standing partnership with several Chinese partners, which dated back to 2009, when it established an office in Beijing, China. Since then, the company had worked with a number of Chinese partners on several high-profile projects..

The Road Ahead

In the year 2023 alone, ACWA Power added 10.7 GW of power, 1.4 million m3/day of desalinated water, 3.7 GWh of Battery Energy Storage System (BESS) capacity, and 3,000 tons/year of green hydrogen. In June 2023, the Board approved the ‘ACWA Power 2.0’ growth plan that aimed to triple assets under management to about USD 250 billion by 2030. This was in alignment with the Kingdom of Saudi Arabia Vision 2030 launched in April 2016 by Crown Prince Mohammed bin Salman. The “ACWA Power 2.0” strategy aimed to tackle climate change and preserve ACWA Power’s competitive advantage and establish the company as a major player in green hydrogen production and renewable energy...

Exhibits

Exhibit I: Saudi Vision 2030
Exhibit II:ACWA Power: Operating Segments
Exhibit III: Business Structure and Model
Exhibit IV: ACWA Power’s Operational Assets (December 2024)
Exhibit V: Programs under Saudi Vision 2030
Exhibit VI: ACWA Power Achieving Leadership in the Global Energy Transition
Exhibit VII: Chinese Investment in the BRI (by Sector since 2013)
Exhibit VIII: China’s BRI and Global Projects

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