Masdar And Consortium Partners Secure Financial Closure For Al Sadawi Solar Project In Saudi Arabia

Saudi Arabia is making notable strides in its quest for sustainable development and a greener future with the advancement of the Al Sadawi solar photovoltaic (PV) project. This 2-gigawatt (GW) initiative, led by Abu Dhabi Future Energy Company PJSC – Masdar, alongside consortium partners GD Power and Korea Electric Power Corporation, stands as a pivotal venture under the National Renewable Energy Programme (NREP), guided and monitored by the Ministry of Energy.

The financial backing has been obtained from eight prominent regional and international banks. This will cover a major portion of the project's total estimated costs, which stand at around $1.1 billion. The financial institutions playing a key role in this venture include Standard Chartered Bank, KEXIM, ADCB, BNP Paribas, ADIB, Bank of China, HSBC, and Société Générale.

The Al Sadawi Independent Power Producer (IPP) Project aligns with Saudi Arabia's ambitious Energy Mix target, aiming for a 50 percent renewable energy composition by 2030. As one of the soon-to-be largest solar plants globally, the Al Sadawi project is poised to play a crucial role in reducing the Kingdom's carbon footprint and advancing its sustainable development agenda.

Situated in the Eastern Province, the Al Sadawi project will operate on a Build, Own, and Operate (BOO) model. A 25-year Power Purchase Agreement (PPA) has already been secured with the Saudi Power Procurement Company (SPPC) at the end of the last year. This agreement underscores the project's long-term commitment to contributing to the Kingdom's energy sector.

The project is slated for early generation at its full capacity by early 2027, with commercial operations expected to commence within the same year. This timeline marks a significant milestone in the Kingdom's clean energy journey, showcasing a robust commitment to harnessing renewable resources for power generation.

Mohamed Jameel Al Ramahi, chief executive officer at Masdar, stated, "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."