Acwa Refinances $2.45bn Hassyan IPP Debt

Why It Matters

The refinancing demonstrates robust capital markets support for gas‑to‑renewable transitions in the Gulf, while bolstering Dubai’s ability to meet growing electricity demand with cleaner assets.

Key Takeaways

• Acwa refinanced $2.45 bn Hassyan IPP debt.
• Hassyan plant delivers 2,400 MW, now gas‑fired.
• New lenders undisclosed; largest Acwa refinancing.
• Ownership: Acwa 26.95%, Harbin 14.7%, DEWA 51%, Silk Road 7.35%.
• DEWA’s seventh phase adds 2,000 MW solar, 1,400 MW storage.

Pulse Analysis

The $2.45 bn refinancing of the Hassyan independent power project marks a pivotal moment for Acwa and the broader Middle‑East power financing landscape. By replacing legacy debt with fresh capital, Acwa not only reduces financing costs but also signals confidence from global lenders in the region’s shift from coal to natural gas. This transition aligns with Dubai’s strategic objective to decarbonise its generation fleet, positioning the Hassyan plant as a bridge between traditional thermal assets and emerging renewable investments.

Hassyan’s 2,400 MW capacity makes it a cornerstone of Dubai Electricity & Water Authority’s (DEWA) portfolio, complementing mega‑projects such as the Jebel Ali complex and the world‑leading MBR Solar Park. The ownership structure—Acwa (26.95%), Harbin Electric (14.7%), DEWA (51%), and Silk Road Fund (7.35%)—reflects a blend of regional and international stakeholders, fostering diversified risk and expertise. The plant’s conversion to natural gas not only improves emissions performance but also enhances operational flexibility, allowing DEWA to balance baseload generation with intermittent solar output.

Looking ahead, the refinancing sets a precedent for future capital raises tied to Dubai’s ambitious seventh‑phase expansion, which will introduce an additional 2,000 MW of photovoltaic capacity and a 1,400 MW, six‑hour battery‑energy‑storage system. Investors are likely to view the successful debt restructuring as a green light for further financing of hybrid projects that combine gas, solar, and storage. As the Gulf economies accelerate their clean‑energy roadmaps, robust financing mechanisms like this will be essential to unlock the next wave of sustainable power infrastructure.

Deal Summary

Saudi Arabia’s Acwa announced the refinancing of the Hassyan independent power project’s existing debt, a $2.45 bn transaction backed by a new, undisclosed group of lenders. The 2,400 MW gas‑fired plant, owned by Hassyan Energy Company, is part of DEWA’s generation portfolio.