Masdar Secures Funds for 2 GW Saudi Solar Plant

Saudi Vision 2030 Powers Forward: Masdar-Led Consortium Secures Financing for 2 GW Solar Gigaproject In a monumental step towards realizing its ambitious renewable energy targets, Saudi Arabia has given the green light to one of the world's largest solar power installations. The UAE-based clean energy giant Masdar, along with its consortium partners GD Power from China and Korea Electric Power Corporation (KEPCO), has officially reached financial close for the 2-gigawatt (GW) Al Sadawi solar photovoltaic (PV) project. The securing of project financing, estimated at approximately $1.1 billion, marks the final go-ahead for construction to begin on this landmark plant, a cornerstone of Saudi Arabia's National Renewable Energy Program (NREP). This gigaproject, located in Saudi Arabia's Eastern Province, is a powerful symbol of the Kingdom's commitment to its Vision 2030 goals, which include generating 50% of its electricity from renewable sources by the end of the decade. The successful financing, backed by a powerhouse group of eight international and regional banks, underscores immense global confidence in Saudi Arabia's clean energy transition and its emergence as a major player on the world's renewable energy stage. A Global Partnership to Build a Solar Behemoth The development of the Al Sadawi plant is a testament to strong international collaboration. The consortium, led by Masdar, brings together leading energy players from the UAE, China, and South Korea, each contributing expertise and resources to execute a project of this massive scale. The project will be developed on a Build, Own, and Operate (BOO) basis, with the consortium taking full responsibility for the plant's construction and long-term operation. The financial viability of the project is anchored by a 25-year Power Purchase Agreement (PPA) signed in late 2024 with the Saudi Power Procurement Company (SPPC), which will act as the sole offtaker for the electricity generated. The project financing facilities, which will cover a substantial portion of the total cost, have been committed by a diverse group of top-tier financial institutions, including Standard Chartered Bank, KEXIM, Abu Dhabi Commercial Bank (ADCB), BNP Paribas, Abu Dhabi Islamic Bank (ADIB), Bank of China, HSBC, and Société Générale. This broad banking syndicate reflects the project's strong commercial fundamentals and its strategic importance to the region. Project Timeline and Impact: Powering the Kingdom's Future The Al Sadawi solar plant is on a fast-track development schedule. Construction is set to begin imminently, with the project expected to commence early generation at its full 2 GW capacity in early 2027. The official commercial operation date is also targeted for the same year. Once operational, the impact of the Al Sadawi project will be profound: Massive Clean Power Generation: As one of the largest single-site solar plants in the world, it will inject a significant amount of clean, zero-emission electricity into the Saudi national grid, powering hundreds of thousands of homes and businesses. Significant Carbon Reduction: The plant will play a crucial role in reducing the Kingdom's carbon footprint, displacing millions of barrels of oil equivalent that would otherwise be used for domestic power generation. Accelerating Vision 2030: The 2 GW of capacity from Al Sadawi will make a substantial contribution towards the NREP's goals, bringing the Kingdom closer to its target of a 50% renewable energy mix and demonstrating tangible progress on its economic diversification strategy. Mohamed Jameel Al Ramahi, CEO of Masdar, emphasized the project's significance, stating, "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 energization for the project, which will help shape the future of clean energy for the Kingdom". A New Energy Era in the Middle East The Al Sadawi project is not just a standalone development; it is the flagship initiative of a much broader and more aggressive push into renewables by Saudi Arabia. It was tendered as part of the fifth round of the NREP, and its scale and competitive pricing—with the consortium reportedly offering a price as low as $0.0129 per kilowatt-hour—signal the Kingdom's ability to attract world-class developers and secure some of the lowest solar energy costs globally. This project, alongside others recently announced by the SPPC, solidifies Saudi Arabia's transformation from the world's leading oil exporter to a future leader in clean energy production. The financial close of the Al Sadawi plant is a definitive milestone, turning ambitious national targets into steel, glass, and gigawatts of clean power on the ground. It is a clear declaration that for Saudi Arabia, the energy transition is not a distant goal, but a present and rapidly accelerating reality.