Saudi Arabia's sovereign investment fund is reportedly eyeing a stake in ACWA Power.
Public Investment Fund (PIF) is said to be nearing an agreement to buy up to 10% stake in the Riyadh-based energy producer.
PIF may ink the agreement with the power plant developer and operator soon.
According to a Bloomberg report cited by Arabian Business, talks are ongoing "and may not result in a deal".
It is yet unclear what ACWA Power's valuation from the investment will be.
PIF, led by the Crown Prince of Saudi Arabia, Mohammad Bin Salman, is investing billions of riyals to ensure future growth and security for the kingdom's economy.
From property development to energy services' provision and waste management, PIF has recently made investments in various companies to diversify Saudi's revenue and service streams.
These investments, coupled with numerous others, are expected to raise the value of PIF's assets under management (AUM) to $400bn (SAR1.5tn) by 2020, creating 256,000 jobs along the way.
Last month, it was reported that ACWA Power is working on plans to raise more than $1bn (SAR3.75bn) through an initial public offering (IPO).
This January, the company announced that it had reached financial close for three solar photovoltaic (PV) power plants in Egypt under Round 2 of the country’s Feed-in-Tariff (FiT) programme.
In a statement, ACWA Power said that the three projects have an aggregate capacity of 165.5MWp and are collectively valued at $190m (SAR712.6m).
Of the estimated total cost, 75% will be funded through a non-recourse project debt from European Bank for Reconstruction and Development (EBRD) and Industrial and Commercial Bank of China (ICBC), while the remaining 25% will be financed with equity capital provided by sponsors.
Located in the Aswan province at Benban, the three PV power plants will commence construction in Q1 2018 and is expected to become operational by Q4 2018.