Consortium reaches financial close on 2 GW Saudi solar project

Masdar, GD Power and Korea Electric Power Corp. (Kepco) have reached financial close on the 2 GW Al Sadawi solar project in Saudi Arabia. The financing includes $1.1 billion from eight regional and international banks.

A consortium of UAE-based Masdar, China’s GD Power and Kepco have reached financial close on the 2 GW Al Sadawi solar project.

The project in the Eastern province of Saudi Arabia will be developed on a build, own and operate basis. A 25-year power purchase agreement (PPA) signed with Saudi Power Procurement Co. (SPPC) is in place.

Secured project financing facilities include approximately $1.1 billion from eight regional and international banks, Standard Chartered Bank, KEXIM, ADCB, BNP Paribas, ADIB, Bank of China, HSBC and Société Générale. A statement released by Masdar says the investment will cover a “substantial part of the total project costs.”

A tender for the Al Sadawi project launched in late 2023 as part of the fifth round of the Saudi Arabian government's National Renewable Energy Program. In October 2024, pv magazine reported Masdar and Kepco offered a price of $0.0129/kWh for the project.

The solar plant is expected to commence early generation at full capacity in early 2027, with commercial operation targeted for the same year.

Saudi Arabia has set a target of achieving 50% renewable energy in its energy mix by the end of the decade.

Last month, SPPC signed seven renewable energy PPAs, including five solar agreements, for a total 15 GW, marking the largest renewable energy capacity signed for in a single phase globally.

Saudi Arabia's cumulative solar capacity surpassed 4.2 GW by the end of 2024, according to figures from the International Renewable Energy Agency (IRENA).