From Aramco to ACWA Power: How Saudi Arabia is redrawing its map of energy influence

In February 2026, an agreement to develop+ two solar plants in Turkiye illustrated Saudi Arabia’s expanding energy diplomacy. A country whose global economic presence has long rested on oil exports is now entering decades-long partnerships to generate electricity abroad. ACWA Power’s agreement with its Turkish counterparts envisages two gigawatts of solar capacity in Sivas and the Taşeli region of Karaman, as the first phase of a five-gigawatt framework. The projects remain under development, but the relationship extends from energy trade into infrastructure investment.

For Riyadh, the strategic question is how to translate oil-sector leverage, investment capital and project delivery into durable relationships that can withstand market shifts and political tensions.

Connecting capital with national strategy

Aramco and ACWA Power have different corporate structures and business models, but their activities sit within Saudi Arabia’s broader energy strategy and Vision 2030. The Public Investment Fund (PIF) provides one institutional connection between them.

According to ACWA’s 2025 annual report, PIF is its largest shareholder, with a 44.16 per cent stake. Aramco’s annual report records direct government ownership of 81.48 per cent, while PIF and its subsidiaries collectively hold 16 per cent. These structures establish clear state links, although attributing individual overseas contracts to direct foreign-policy instructions would require separate evidence.

Their strategic significance lies in the potential to align investment with national priorities. Saudi Arabia can deepen its presence in partner economies through refinery feedstock, electricity generation and water provision. Each creates a relationship with different obligations and time horizons.

Aramco: Securing long-term demand

Aramco’s investments in overseas refineries help secure demand for Saudi crude. Its annual report explains that integrating upstream and downstream operations is intended to place larger volumes of its oil and strengthen earnings resilience.

When an oil supplier holds a stake in a buyer country’s refining assets, feedstock decisions become linked to investment returns and continued refinery operations. This can strengthen Saudi crude’s position in a target market and increase the cost of changing commercial arrangements.

The strength of that connection depends on contracts, refinery characteristics and access to alternative suppliers. Nevertheless, the strategic logic is clear: Aramco seeks customers whose shared commercial interests can support more enduring demand for its future production.

ACWA Power: Building long-term infrastructure partnerships

ACWA Power builds long-term relationships by developing and operating electricity and water facilities. Investor revenues depend on project performance and buyer payments; host countries depend on the company meeting its obligations.

The Turkish agreement demonstrates the timescale involved. The announced power purchase agreement (PPA) framework envisages a 30-year purchasing period. According to Turkiye’s Ministry of Energy, a separate incentive tariff applies for the first five years, followed by the announced plant-specific tariffs for 25 years. This horizon gives the partnership an economic life extending beyond individual governments.

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For Turkiye, additional solar capacity can diversify electricity generation and reduce reliance on imported fuels. For the Saudi company, it offers long-term revenues and a presence in a major market. These mutual interests create incentives to maintain stable economic relations.

Participation in a power plant does not confer authority over a host country’s foreign policy. Its diplomatic significance grows when projects arrive on schedule, deliver reliable electricity and produce tangible benefits for the host.

Central Asia: Competition and cooperation

Uzbekistan offers another example. In May 2026, ACWA signed financing agreements worth $226 million for the 300-megawatt Bash II wind farm. Securing implementation funding is a substantive step beyond announcing a project.

For countries needing additional generating capacity, the ability to bring together capital, lenders and contractors is a considerable advantage. It also provides an opportunity to deepen Saudi Arabia’s relationships with Central Asia.

Riyadh is not alone in this market. The UAE’s Masdar is also involved in Uzbek solar and storage projects. Chinese companies play several roles: Energy China served as the engineering, procurement and construction contractor for ACWA’s Tashkent solar project, while China Southern Power Grid was announced as a co-investor in ACWA’s wind projects.

Competition for influence therefore overlaps with cooperation in financing and construction. A wider choice of participants also strengthens host countries’ bargaining position over prices, skills transfer and risk allocation.

The test of trust

Decades-long electricity contracts carry risks. Payment currency, the ability to convert and transfer revenues, buyer creditworthiness and grid capacity all affect project viability. Sovereign guarantees or insurance, where available, can mitigate some risks. PIF’s shareholding in ACWA does not itself constitute a legal guarantee of every project’s obligations.

Domestic developments also underpin this overseas expansion. Saudi Arabia’s Liquid Fuel Displacement Programme, alongside renewable-energy expansion, supports efforts to reduce liquid-fuel consumption. The kingdom’s electricity strategy seeks to replace liquid fuels in power generation with natural gas and renewables. Depending on electricity demand growth, implementation could free more oil for export or higher-value uses.

Saudi Arabia’s emerging map of influence comprises oil customers, refining partners and electricity buyers. Its diplomatic credibility will depend on delivery. For host countries, a contract acquires strategic value when it produces reliable electricity, local benefits and fair obligations. By delivering those outcomes, Riyadh can turn commercial participation into trust that outlasts an oil cargo or a political agreement.

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The views expressed in this article belong to the author and do not necessarily reflect the editorial policy of Middle East Monitor.