Abstract

ACWA Power, a Saudi-listed global leader in renewable energy and desalination, has rapidly expanded internationally through strategic partnerships, particularly with Chinese firms under the Belt and Road Initiative (BRI). Since establishing a Beijing office in 2009, ACWA Power has leveraged Chinese financing, EPC contractors, and investment partners to secure over US$30 billion in projects, including pioneering ventures in wind, solar, desalination, and green hydrogen. By 2023, the company had launched its ambitious “ACWA Power 2.0” strategy aligned with Saudi Vision 2030, aiming to triple assets under management to USD 250 billion by 2030. However, ACWA Power could face strategic dilemmas. Its deep reliance on Chinese partnerships —while accelerating growth — raises concerns about overdependence, particularly with BRI coming under scrutiny for debt sustainability, geopolitical risks, and environmental impacts. With global calls for greener finance and low-income countries struggling with BRI-related debt, CEO Marco Arcelli must consider whether to double down on China-led collaborations or diversify partnerships globally to safeguard long-term independence and resilience. This case can be used in International Business, Strategic Management, and Sustainability & Energy Management courses. Topics include strategic alliances, global expansion, risk diversification, energy transition, and geopolitical risk management.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Assess how sustainability and geopolitical considerations shape corporate strategy in international markets.
• Investigate how multinational enterprises integrate global ambitions with regional priorities to drive sustainable growth and foster innovation.
• Examine the challenges and opportunities of aligning corporate strategies with multiple macro-level frameworks, such as China's Belt and Road Initiative and Saudi Arabia's Vision 2030.
• Formulate strategic options for balancing domestic growth with global expansion while managing dependence on one partner country.

Keywords

Global Expansion; Cross-Border Partnerships; Strategic Alliances; Geopolitical Risks; Sustainability; Growth Strategy