Masdar Consortium Secures Financing for 2-GW Solar Project in Saudi Arabia

Emirati renewables company Masdar and its consortium partners, China’s GD Power Development and Korea Electric Power Corporation (KEPCO), have closed the financing for the 2-GW Al Sadawi solar photovoltaic project in Saudi Arabia.

The partnership secured project financing facilities to cover a substantial portion of the project’s total estimated cost of about USD 1.1 billion (EUR 942.1m), Masdar said on Tuesday. The lending group includes Standard Chartered, KEXIM, ADCB, BNP Paribas, ADIB, Bank of China, HSBC and Societe Generale.

The Al Sadawi solar plant will be located in the Kingdom’s Eastern Province. Early generation and full commercial operations are planned for 2027, Masdar said.

The Masdar-led consortium secured rights for the project in the fifth round of Saudi Arabia’s National Renewable Energy Programme (NREP) after submitting the lowest bid in the competition. The award led to a 25-year power purchase agreement (PPA) with the Saudi Power Procurement Company (SPPC).

The project will be developed on a build-own-operate basis.

“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,” Masdar’s CEO Mohamed Jameel Al Ramahi stated. “We look forward to working closely with our partners to achieve full energization for the project, which will help shape the future of clean energy for the Kingdom.”

(USD 1.0 = EUR 0.856)