عـــربـــي

ACWA Power Company Integrated
Annual Report 2021

AT A GLANCE

At the forefront
of energy
transition

Bokpoort CSP IPP, South African

12
Countries
across three
continents
64
Projects1

Bokpoort CSP IPP, South Africa
1 Includes operational, under construction and advanced development projects.

AT A GLANCE

At the forefront of energy transition

Since ACWA Power was established in the Kingdom of Saudi Arabia in 2004, the company has evolved into a leading international developer, investor and operator of a portfolio of power generation and desalinated water production plants to supply electricity and potable water to people in the Middle East and North Africa, Southern Africa, Central Asia and Southeast Asia reliably, responsibly and at low cost.

By producing power and desalinated water in this way, we provide the staples of life that support human existence, while also empowering the long-term economic development and social stability of nations we invest in and serve.

We are proud to play a vital role in the lives of millions of people in the Kingdom of Saudi Arabia and abroad.

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AT A GLANCE continued

At the forefront of
energy transition

As at 31 December 20211
42.7  
GW

Gross power
generation capacity

6.4 mn m3
per day

Gross water
desalination capacity

251.7 SAR
bn

Portfolio size
(Total investment cost)2

Net zero

Net zero emissions by 2050

14.8  
GW

Renewable assets capacity

35  
%

Gross renewable power
capacity in the portfolio

1 Includes operational, under construction and advanced development projects.
2 Total investment cost, here and elsewhere in the document, represents total estimated project cost as at 31 December 2021.

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AT A GLANCE continued

What we do

Our Develop, Invest, Operate, Optimise business model encompasses the entire lifecycle of an asset. We develop projects, invest in them and operate them, continually looking into how we can optimise their financial structures to allow us to allocate and extract returns across the lifecycle of the asset.


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AT A GLANCE continued

WHERE WE OPERATE

Our strategic geographic expansion has focused on targeting high-growth economies with sound regulatory environments.

Project type

  •  Advanced development
    •  
  •  Power – Renewable
    •  
  •  Power – Conventional
    •  
  •  Water
    •  
  •  Power and Water

  • Saudi Arabia

  • Middle East (excluding Saudi Arabia)

  • North Africa

  • Southern Africa

  • Asia

  • Projects

    64

    Countries

    12

    Continents

    3

* Gross capacity MW (including advanced development)    

** Gross capacity 000 m3/day (including advanced development)

Project type

 Advanced development   Power – Renewable   Power – Conventional   Water   Power and Water

Our strategic geographic expansion has focused on targeting high-growth economies with sound regulatory environments.

251.7 SAR bn

Average age of
portfolio1

0–5 Years 73%
6–10 Years 11%
>10 Years 16%
42.7 GW

Power split by
technology

Renewable 35%
Gas 48%
Oil and coal 17%
6.4 mn m3/day

Water split by
technology

SWRO2 72%
MSF3 15%
MED4 13%
  • 1 Based on year of project commercial operation date (PCOD). 
  • 2 SWRO – Seawater reverse osmosis.
  • 3 MSF – Multi-stage flash distillation.
  • 4 MED – Multiple effect distillation.
  • 5 NEOM Green Hydrogen JV includes solar and wind.
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FINANCIAL HIGHLIGHTS

Financial strength
driving growth

FINANCIAL HIGHLIGHTS

Financial strength
driving growth

Consolidated financial highlights1

Operating income before impairment loss and other expenses

12.5%
2,193 SAR
mn
2021
2,193
2020
1,949
2019
1,842

Adjusted net profit (attributable to equity holders of the parent)

3.1%
1,194 SAR
mn
2021
1,194
2020
1,158
2019
1,694
  • Refer to the financial review section on page 32 for definitions and the audited consolidated financial statements on page 160 for further details.
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FINANCIAL HIGHLIGHTS continued

Financial strength
driving growth

Parent-level liquidity and leverage highlights1

Parent operating cash flow (POCF)

51.4%
1,611 SAR
mn
2021
1,611
2020
1,064
2019
1,334

Total parent net leverage

42.1%
10,022 SAR
mn
2021
10,022
2020
7,051
2019
4,517

Parent net leverage ratio (Parent net leverage/net tangible equity attributable to equity holders of the parent)

(0.19)X
0.78  
Times
2021
0.78
2020
0.96
2019
0.50

Parent net leverage/POCF

(0.4)X
6.22  
Times
2021
6.22
2020
6.63
2019
3.39
  • Refer to the financial review section on page 32 for definitions and the audited consolidated financial statements on page 160 for further details.
  • Refer to the financial review section on page 32 for definition and further details.
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OPERATIONAL HIGHLIGHTS

Focused on creating
long-term value

0.01

In 2021, ACWA Power Group
wide overall LTI rate
decreased to 0.01 from 0.03
and Incident rate decreased
to 0.05 from 0.12 as
compared to 2020.

OPERATIONAL HIGHLIGHTS

Focused on creating
long-term value

Consistently high operational and Health, Safety, Security and Environment (HSSE) performance

600 ‘000
m3/day

We brought the 600,000 cubic metres/day Rabigh Three IWP in Saudi Arabia online, which was soon after verified and confirmed by Guinness World Records as the “Largest RO (Reverse Osmosis) Plant in Commercial Operation” in the world.

45 SAR
bn

In October 2021, we announced the completion of the acquisition of the first group of assets for the SAR 45 billion Jazan Integrated Gasification Combined Cycle (IGCC) project.

Net Zero

Net zero emission by 2050 A pioneer in globally landmark large-scale initiatives such as green hydrogen and giga-cities together with its JV partners, ACWA Power is dedicated to reduce its carbon intensity gradually targeting to reach net zero emissions status by 2050.

29 
% Increase in
renewable
capacity

We added five new renewable projects to our advanced development portfolio in Saudi Arabia, Egypt and Uzbekistan. This brings the total renewable energy capacity in our portfolio to 14.8 GW, a 29 percent increase from 2020.

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OPERATIONAL HIGHLIGHTS continued

Focused on creating
long-term value

Consistent operational excellence and culture of safety

Health, safety and environment performance Lost Time Incident Rate (LTIR)1

2021
0.01
0.00
2020
0.06
0.03
2019
0.05
0.03
Construction phase2     Operation phase2
In 2021, ACWA Power crossed 50 million safe manhours without an LTI (Lost time Injury) for the first time in its history, with over 30,000 workers involved at our 64 assets (Construction and Operational sites) across our global operations.
  • Ratio includes both full-time employees of ACWA Power and temporary contractors
  • Data on 200,000 man hours.

Operational performance
Overall plant availability

Power availability

2019
2020
2021

Water availability

2019
2020
2021
  • Availability performance well above contractual threshold limits
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CHAIRMAN’S MESSAGE TO SHAREHOLDERS

A new dawn

CHAIRMAN’S MESSAGE TO SHAREHOLDERS

A new dawn

This is our first Annual Report as a public company following our landmark Initial Public Offering (IPO) and the subsequent listing on Tadawul on 11 October 2021. I am very excited to address all our stakeholders as the Chairman of the Board of Directors of ACWA Power Company.

  • 250  
    Times

    The successful IPO was oversubscribed by 250 times, including 20 times by Saudi retail investors.

  • 70  
    %

    Entrusted to lead the development of 70 percent of Saudi Arabia’s renewables target.

  • 6,000

    Our Higher Institute for Water and Power Technologies offers skills development and training in the new technologies, we are offering practical and effective assistance to the youth of our country. The Institute has helped more than 6,000 of the nation’s young people to date.

Read more
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CEO’S MESSAGE

A truly landmark IPO

CEO’S MESSAGE

A truly landmark IPO

Through the IPO, we offered 81.2 million shares to the public, representing 11.1 percent of the company. It was oversubscribed by 250 times (including 20 times by Saudi retail investors) and subsequently raised SAR 4.5 billion in capital.

  • 4.5 SAR
    bn

    The landmark Initial Public Offering (IPO) raised SAR 4.5 billion, representing 11.1 percent of the company.

  • 3.5 SAR
    bn

    The financial close for the SAR 3.5 billion Sudair solar plant, a key project in the PIF’s renewables energy programme.

  • 45 SAR
    bn

    Following the financial close in October 2021, we announced the completion of the acquisition of the first group of assets for the SAR 45 billion Jazan Integrated Gasification Combined Cycle (IGCC) project.

Read more
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PERFORMANCE REVIEW

Achievements across geographies and technologies

Reliable delivery
of power and water
Historically, our plant
availability remained well above
our contractual commitments
and with 90 percent and
93 percent overall plant
availability for power
and water, 2021 was
no different.

Shuqaiq IWPP, Saudi Arabia

PERFORMANCE REVIEW

Achievements across geographies and technologies

Reliable delivery
of power and water
Historically, our plant
availability remained well above
our contractual commitments
and with 90 percent and
93 percent overall plant
availability for power
and water, 2021 was
no different.

Shuqaiq IWPP, Saudi Arabia

PERFORMANCE REVIEW

Achievements across geographies and technologies

Reliable delivery
of power and water
Historically, our plant
availability remained well above
our contractual commitments
and with 90 percent and
93 percent overall plant
availability for power
and water, 2021 was
no different.
5

Five new large-scale renewable projects into advanced development fleet (+3,500 MW); renewable energy capacity at 14.8 GW at the end of 2021, 35 percent of portfolio.

10

During 2021, 10 projects achieved full or partial ICOD/PCOD.

 

Shuaa Energy 3 PSC
Ingratiation of 300 MW first stage of Shuaa Energy 3 PSC.

5

Five financial closures including Sudair PV, Jazan IGCC and the Red Sea Development Project.

2,193 SAR
mn

Consolidated operating income before impairment losses and expenses.

 

Shuaa Energy 3 PSC
Ingratiation of 300 MW first stage of Shuaa Energy 3 PSC.

Central Asia
ACWA Power expands its presence in Central Asia with largest single-site wind farm in the region.

Agreement with Institute of Internal Audit
Strategic agreement with Saudi Arabia’s Institute of Internal Audit.

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CORPORATE REVIEW

Empowering people, managing risk, driving digitalization

Barka 1 IWPP, Oman

We have a clear
localisation strategy to
achieve our Saudisation
targets in the Kingdom
and other localisation
targets abroad.

Barka 1 IWPP, Oman

CORPORATE REVIEW

Empowering people, managing risk, driving digitalization

We have a clear
localisation strategy to
achieve our Saudisation
targets in the Kingdom
and other localisation
targets abroad.

To stay at the cutting edge of renewable energy requires an ongoing commitment to developing our people, to managing the risks that we face as a company each day and to use every means at our disposal to make us more efficient and streamlined.

60  
%

We now employ nearly 2,369 local employees, representing over 60 percent of the total workforce.

We strive to identify future leaders early in their careers and to create the right opportunities for them to acquire expertise and experience.

We are expanding our AI library by working in new capabilities, such as health and safety (H&S) equipment protection detection, energy and storage efficiency, more efficient operational simulations and construction efficiency models.

Net Zero

ACWA Power is committed to reducing the greenhouse gas (GHG) emission intensity of our portfolio by 50 percent by 2030 and to net zero by 2050.

We have introduced new ideas and capabilities to make energy transition a reality.

In the year ahead, ACWA Power’s Digital Hub will continue to deliver capabilities to make our offering even more efficient.

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SUSTAINABILITY REVIEW

At the heart of
our operations

Khalladi Wind IPP, Morocco

Empowering women

Launching Women’s Initiative
for Networking and Global
Solutions (WINGS) – an initiative
focusing on sustainable female
empowerment and inclusion,
while simultaneously ensuring
that female leaders are given
opportunities to progress
in the Company.

Khalladi Wind IPP, Morocco

SUSTAINABILITY REVIEW

At the heart of
our operations

This review provides a snapshot of our 2021 sustainability and ESG performance, as well as updates on our commitments for the years ahead. These commitments are supported by our ESG strategy, developed in 2020 and rolled out in 2021.

Facilitating the inclusion of climaterelated risks into our decision-making

Combining sustainability with risk and strategy in one single function, led by a senior C-level executive with a seat on the Management Committee, and facilitating the inclusion of climate-related risks in our decision-making processes.

Improving ESG data management

Striving for an ongoing improvement in our ESG data management by strengthening our internal reporting systems and processes and adopting Synergi Life to educate and disseminate information and monitor the performance of HSSE and environmental indicators.

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SUSTAINABILITY REVIEW continued

At the heart of
our operations

Continuous improvement of emission reporting

Adopting the GHG Protocol Corporate Accounting and Reporting Standard, the most relevant and internationally recognised GHG accounting and reporting standard for calculating and reporting emissions.

Global award for procurement excellence

First power and water company in the region to achieve the CIPS Procurement Excellence Programme (PEP) Standard, a globally-recognised award presented to organisations demonstrating excellence in their procurement and supply chain activities.

Improving people management

Updated and harmonised several HR policies to enhance performance, follow best practice and ensure consistency; improved our people management processes, including talent acquisition, performance management, learning and development and renumeration.

New strategy for localization

Initiating the development of a clear localisation strategy and remaining committed to achieving our Saudisation targets in the Kingdom, as well as other localisation targets in our countries of operation.

Center of Excellence launched

Ongoing collaboration with the University of Science and Technology (KAUST) to pursue goal-oriented research aimed at achieving further cost efficiencies in desalinated water production and solar power generation. Established Master Research Agreement (MRA) with KAUST to officially launch the ACWA Power Centre of Excellence for Desalination and Solar Power (KAPCOE).

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