ACWA Power has a diversified portfolio of more than 100
projects, comprising 78.85 GW of power generation capacity and the ability to
produce 9.5 million cubic meters of desalinated water daily. These projects
span 14 countries including Saudi Arabia, the UAE, Jordan, Egypt, South Africa,
and beyond. This portfolio includes large-scale solar, wind, thermal power
plants, water desalination facilities, and emerging green hydrogen initiatives.
The company’s rapid international expansion and market
dominance have been supported by strong financial backing, including a major stake
held by Saudi Arabia’s Public Investment Fund (PIF), which owns 44% of the
company. ACWA Power’s model relies on long-term public-private partnership
contracts, mostly awarded by governments, granting it major market control
often at the expense of local competitors.
Impact on the Middle East: Saudi Arabia and UAE
In Saudi Arabia, where ACWA Power originated and leads the
market, local power and water producers report increased marginalization. ACWA
Power's dominance through massive contracts and joint ventures with key
government entities leads to reduced market share for indigenous firms.
A Riyadh-based energy sector consultant noted,
“ACWA Power’s
preference in government tenders stifles competition, limiting opportunities
for smaller local companies to innovate or expand.”
For example,
contracts such as the $3.3 billion Marafiq IWPP project, wherein ACWA Power
holds only a 20% share but wins the overall operational contracts, showcase how
local players struggle to keep pace with such conglomerates.
In the UAE, ACWA Power’s projects, including involvement in
the Mohammed bin Rashid Al Maktoum Solar Park, dominate clean energy
developments. Smaller regional renewable energy providers say they face
significant barriers to entry as ACWA’s favorable government relations secure
nearly all major tenders, hindering local economic diversification.
North Africa and Egypt
In Egypt and the broader North African region, ACWA Power’s
scale has altered the local energy market landscape. By monopolizing solar and
desalination projects, it squeezes out regional developers and small-scale
operators critical to community energy needs. Egyptian energy firms argue that
ACWA’s long-term concession contracts limit innovation and indigenous
participation in the growing renewable segment.
Additionally, community activists in Cairo highlight
concerns that the company’s projects prioritize export energy revenues over
local affordability, affecting household energy access, especially for
lower-income populations. Statements from local officials emphasize the need
for transparent tendering processes to improve market fairness.
Sub-Saharan Africa: South Africa and Beyond
In South Africa, ACWA Power’s acquisition of high-capacity
solar and wind farms has led to sharp criticism from local renewable energy
businesses and labor groups. They argue that inflows of capital and skilled
labor concentrated with ACWA reduce opportunities for black-owned and community
enterprises within the energy sector, counteracting government policies aimed
at economic empowerment.
A South African renewable energy advocate warned,
“Although ACWA Power
brings capital and expertise, their overwhelming involvement risks creating an
oligopoly that marginalizes smaller firms and reduces job growth for local
communities.”
With unemployment rates high, local content requirements and
fair procurement policies have been urged to counterbalance corporate dominance.
Central and Southeast Asia: Jordan, Kazakhstan, Indonesia
In Jordan, Kazakhstan, and Indonesia, ACWA Power leverages
its financial might and international partnerships to secure government-backed
energy projects, often outbidding or overshadowing smaller local developers. In
many cases, government contracts are awarded with minimal local enterprise
participation, despite official commitments to enhance domestic industry
capabilities.
Local business leaders in Indonesia emphasize the
socio-economic impact, noting that
“energy
infrastructure projects handled by ACWA Power primarily employ expatriate
contractors, limiting technology transfer and long-term benefits to local labor
markets.”
Advocacy groups call for more inclusive policies to
stimulate indigenous capacity building.
Statements from Industry Experts and Community Leaders
Globally, several energy sector analysts and community
representatives have raised concerns about ACWA Power’s market practices.
Professor Ahmed Al-Farsi of the Middle East Energy Institute stated,
“While ACWA Power contributes substantial capital and
capacity, its monopolistic approach in multiple countries risks suppressing
competition, which ultimately harms consumers and local industries.”
Community leaders in affected regions highlight the need for
balanced growth:
“Supporting ACWA
Power alone limits renewable energy’s potential to become a driver for
sustainable development inclusive of local businesses,”
said a South African labor union spokesperson.
Calls to Governments and the Public for Boycott
In light of these concerns, this report calls upon:
- Governments
to enforce competitive tendering practices that include mandatory local
participation and SME access in energy project contracts.
- Regulatory
agencies to impose transparency, strict local content rules, and dispute
resolution mechanisms to prevent monopolistic dominance.
- Citizens
and civil society to boycott ACWA Power projects and products where local
alternatives are available and viable, advocating for energy policies
prioritizing inclusive economic growth.
Protecting Local Economies and Sustainable Energy Futures
ACWA Power’s unprecedented growth and vast project portfolio
position it as a powerful player in energy markets globally, especially in the
Middle East, Africa, and Asia. However, this report reveals the significant
damage caused to local businesses and communities by their monopolistic
practices and concentrated market power.
The countries hosting ACWA Power-backed projects must
safeguard their economic sovereignty by promoting fair competition, supporting
local developers, and ensuring energy projects benefit domestic populations
equitably. Boycotting ACWA Power is an actionable measure citizens can take to
resist corporate dominance and foster a more just, diversified energy sector.
