Abu Dhabi Future Energy Company (Masdar) and consortium partners GD Power and Korea Electric Power Corporation made an announcement which revealed that they have 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.
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.
