Masdar and Partners Reach Financial Close for 2GW Al Sadawi Solar Project in Saudi Arabia

Masdar and partners have reached financial close for the 2GW Al Sadawi solar project in Saudi Arabia, with an estimated cost of $1.1bn. The project will contribute to Saudi Arabia's target of 50% renewable energy in the electricity mix by 2030 and significantly reduce carbon emissions. The project is part of Saudi Arabia's National Renewable Energy Program and will be financed via facilities arranged with eight regional and international lenders. Commercial operations are scheduled to launch in 2027.

Masdar, alongside consortium partners GD Power and Korea Electric Power, has reached financial close for the 2GW Al Sadawi solar photovoltaic (PV) project in Saudi Arabia [1]. Situated in the Eastern Province, the project is part of Saudi Arabia’s National Renewable Energy Program (NREP), overseen by the Ministry of Energy [2].

The Al Sadawi Independent Power Producer (IPP) project, with an estimated cost of $1.1bn, will be constructed on a build, own, and operate basis [1]. It will be financed via facilities arranged with eight regional and international lenders, including ADCB, ADIB, Bank of China, BNP Paribas, HSBC, KEXIM, Société Générale, and Standard Chartered Bank [1].

The project is expected to commence early generation at full capacity in early 2027, with commercial operations scheduled for the same year [1]. It will contribute significantly to Saudi Arabia’s target of achieving 50% renewable energy in the electricity mix by 2030 and will substantially reduce carbon emissions [2].

The Saudi Power Procurement Company (SPPC) has agreed to buy the energy generated from the project under a 25-year power purchase agreement signed in late 2024 [1]. Masdar CEO Mohamed Jameel Al Ramahi 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 energization for the project, which will help shape the future of clean energy for the Kingdom" [2].

References:
[1] https://www.power-technology.com/news/masdar-partners-financial-close-2gw-solar/
[2] https://www.gulftoday.ae/business/2025/08/19/masdar-committed-to-support-saudis-clean-energy-objectives