Masdar-led consortium secures $1.1bn funding for 2GW solar project in Saudi Arabia

Abu Dhabi-headquartered renewable energy company Masdar and consortium partners GD Power and Korea Electric Power Corporation announced financial close for the 2GW Al Sadawi solar photovoltaic project in Saudi Arabia.

Project financing facilities have been secured with eight regional and international lenders, which will cover a substantial part of the total project costs, estimated at approximately $1.1 billion.

The participating banks in the project financing are Standard Chartered Bank, KEXIM, ADCB, BNP Paribas, ADIB, Bank of China, HSBC and Société Générale.

The project is part of the National Renewable Energy Program (NREP), which is led and supervised by the Ministry of Energy.

The Al Sadawi Independent Power Producer (IPP) Project marks a milestone in the Kingdom of Saudi Arabia's journey towards achieving its Energy Mix target of 50% renewable energy by 2030. Set to be one of the world’s largest solar plants, the project will contribute substantially to the reduction if carbon emissions in the Kingdom of Saudi Arabia.

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Located in the Eastern Province, the solar PV plant will be developed on a Build, Own, and Operate (BOO) basis, with a 25-year Power Purchase Agreement (PPA) signed with the Saudi Power Procurement Company (SPPC) late last year. The plant is expected to commence early generation at full capacity in early 2027, with commercial operation targeted for the same year.

Mohamed Jameel Al Ramahi, chief executive of Masdar, commented: “Masdar is actively committed to supporting Saudi Arabia’s clean energy objectives and 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, with the Al Sadawi plant 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 energisation for the project, which will help shape the future of clean energy for the Kingdom.”