The 2-gigawatt Al Sadawi Solar Project in Saudi Arabia has made significant progress, moving directly into its construction phase. A international consortium led by the UAE’s Masdar alongside China’s GD Power and the Korea Electric Power Corporation (KEPCO), secured $1.1 billion in project financing from eight regional and international lenders to fund the venture. Chinese power firm Shanghai Electric was awarded the primary engineering, procurement, and construction (EPC) contract to build the facility.
The massive solar farm spans roughly 40 square kilometers in Hafar Al Batin. Once fully operational in early 2027, the plant will generate over 6 billion kilowatt-hours of electricity per year under a 25-year agreement with the Saudi Power Procurement Company, generating enough clean energy to power 700,000 homes.
How Important are Such Solar Projects to Saudi Arabia
Large-scale solar initiatives are vital for Saudi Arabia as the kingdom rapidly expands its digital infrastructure and artificial intelligence hubs. Data centers consume massive amounts of electricity around the clock to run servers and cooling systems. By channeling low-cost solar power into the national grid, these projects supply the reliable, clean energy needed to run heavy computing workloads without relying solely on fossil fuels.
This green power boost helps technology companies meet strict sustainability targets while keeping operational costs down. Most importantly, it supports the Vision 2030 goal of turning Saudi Arabia into a major regional technology center powered by renewable energy.
October 29, 2025
Abu Dhabi Future Energy Company (Masdar) and consortium partners GD Power and Korea Electric Power Corporation reached financial close for Saudi Arabia’s 2-gigawatt Al Sadawi Solar Project. This solar project is a landmark project under the National Renewable Energy Program. Furthermore, the project is led and supervised by the Ministry of Energy. This has been followed by the announcement of another contract won by Masdar on October 2025 for 2 Solar PV Projects totaling 2GW marking the company’s growing dominance in the region.
Project financing facilities have been secured with eight leading regional and international lenders. Also, these will cover a substantial part of the total project costs, estimated at approximately $1.1 billion.
Al Sadawi Project Factsheet
Project name: Al Sadawi Solar Project
Location: Eastern Province, Saudi Arabia
Capacity: 2,000 MWac (2 GWac), making it one of the largest single-location solar installations in the world
Project cost: Approximately US$1.1 billion
Developers: A consortium led by Masdar (Abu Dhabi Future Energy Company PJSC), with partners GD Power (China) and Korea Electric Power Corporation (KEPCO).
EPC contractor: Shanghai Electric
Timeline:
- PPA Signing: November 2024
- Early Generation: Expected to begin in early 2027
- Commercial Operation Date (COD): Targeted for 2027
Participant Banks in the Project
The participating banks in the development of this renewable energy project are: Al Sawadi financing are Standard Chartered Bank, KEXIM, ADCB, BNP Paribas, ADIB, Bank of China, HSBC and Société Générale.
Significant of the Project
The Al Sadawi Independent Power Producer Project marks a significant milestone in the Kingdom’s journey towards its energy mix target. The Kingdom seeks to achieve 50 percent renewable energy by the year 2030. Additionally, the solar project is set to be one of the world’s largest solar plants. Furthermore, the project will contribute substantially to sustainable development and cut carbon emissions in the Kingdom of Saudi Arabia.
“Masdar is actively committed to supporting Saudi Arabia’s clean energy objectives. Additionally, this landmark project will add to our growing portfolio in the Kingdom. Today’s announcement marks a significant step in Saudi Arabia’s clean energy journey. Additionally, the Al Sadawi plant is set to be one of the largest solar power projects in the world. We look forward to working closely with our partners to achieve full energization for the project. Also, this project will help shape the future of clean energy for the Kingdom,” said Mohamed Jameel Al Ramahi, CEO, Masdar.
Location of Al Sadawi Solar Project
The Al Sadawi plant is located in the Eastern Province. Also, the project will be developed on a build, own, and operate basis. It has a 25-year power purchase agreement that was signed with the Saudi Power Procurement Company (SPPC) late last year. Lastly, the plant is expected to commence early generation at full capacity in early 2027. Also, commercial operation is targeted for the same year.
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