Project financing is now secured for the construction of one of the most ambitious solar plants, set to become one of the world’s largest solar installations.
The deal gathers eight of the region’s and world’s leading banks, whose commitments will form the financial base necessary to bring this large-scale development of infrastructure to fruition. Consortium partners worked closely with the Saudi Power Procurement Company and the lenders to finalize the project and financing arrangements.
Abu Dhabi Future Energy Company PJSC – Masdar, in partnership with consortium partners GD Power and Korea Electric Power Corporation, announced the financial close of the 2-gigawatt (GW) Al Sadawi solar photovoltaic (PV) project. The initiative forms part of the National Renewable Energy Program (NREP), which is overseen by the Ministry of Energy.
The financing structure, estimated at around US$1.1 billion, will cover a significant share of the overall project expenditure.
Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, remarked: “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.”
Seen as a significant milestone for the Kingdom, the Al Sadawi solar project will play a crucial role in advancing Saudi Arabia’s Energy Mix plan, which targets 50% renewable power by 2030. The project is anticipated to contribute substantially to reducing the carbon emissions and leading sustainable development in the Kingdom of Saudi Arabia.
It will be built on a Build, Own, and Operate (B00) model and supported by a 25-year Power Purchase Agreement (PPA) with the Saudi Power Procurement Company. Commercial operations are planned to begin in early 2027.
The participating banks in the Al Sadawi solar project comprise Standard Chartered Bank, KEXIM, ADCB, BNP Paribas, ADIB, Bank of China, HSBC and Société Générale.