ACWA Power enters US energy market with 49% stake in EIG venture

Summary

• An ACWA Power unit signed a partnership with EIG to invest in US energy infrastructure.
• ACWA holds 49% and EIG 51%; each transaction requires separate approval under agreed governance.
• The deal moves a PIF-backed developer from exporting expertise to direct investment in the United States.

The latest

A subsidiary of ACWA Power has signed a strategic partnership with EIG Management Company to invest in energy infrastructure in the United States, with ACWA Power holding 49% and EIG 51%, according to the company's statement to Tadawul reported by Argaam on Thursday 29 October. The venture targets direct acquisitions and development projects. ACWA Power said it expects no material financial impact at this stage.

Details

• The structure: The partnership is held 49% by the ACWA Power subsidiary and 51% by EIG Management Company, according to the Tadawul statement. The split leaves the US firm as majority holder while the Saudi developer takes a substantial minority position in the platform.
• The mandate: The venture will pursue acquisition opportunities and direct development of energy infrastructure assets in the United States, according to the statement. It is not a single-asset transaction but an open-ended investment platform through which deals will be sourced over time.
• Deal approvals: Each individual transaction under the partnership requires separate approval, according to the statement. Capital contributions will be made in line with agreed governance frameworks and investment criteria, meaning neither side is committed to a pre-set funding total at signing.
• Duration: The agreement is long-term and carries no fixed expiry date, according to the statement to Tadawul. That structure allows the two partners to build a pipeline across multiple investment cycles rather than work to a defined wind-down horizon.
• Division of roles: ACWA Power contributes development and operating capabilities, while EIG contributes investment and financing expertise along with its business platforms, according to the statement. The pairing matches a project developer with a capital provider rather than duplicating the same function.
• EIG's scale: EIG Management Company manages assets worth $27.1 billion as of 30 June 2026, according to the statement. That figure sets the size of the balance sheet and investor relationships ACWA Power is attaching itself to in the US market.
• Financial impact: ACWA Power said it expects no material financial impact from the agreement at present. The company added that the impact of any future transaction under the partnership will be assessed and disclosed separately when it occurs.
• Not disclosed: The statement did not attach a financial value to the partnership, name a target investment size, or identify the specific assets or sub-sectors the venture intends to pursue first. No timeline for a first transaction was given.

Background

ACWA Power is majority-owned by Saudi Arabia's Public Investment Fund and has built its portfolio around power generation and desalination projects, largely in the Middle East, Africa, Central Asia and Southeast Asia, with a growing renewables and green hydrogen pipeline.

Between the lines

The 49% stake and the requirement that every deal be approved separately give ACWA Power a measured entry rather than a committed capital outlay, which is consistent with its statement that no material financial impact is expected now. Pairing its development and operating role with EIG's financing platforms suggests the Saudi company is buying access to US deal flow as much as to assets.

What's next

Watch for the first transaction under the partnership, which ACWA Power said will be assessed and disclosed separately, along with any Tadawul filing specifying deal value, asset type or capital commitment.

Source: ACWA Power's statement, Tadawul