Saudi Arabia’s ambitions to become a global renewable energy powerhouse have taken a major step forward with the financial close of the $1.1 billion Al Sadawi solar project, one of the largest photovoltaic developments in the world. The project is being led by a consortium comprising Masdar (UAE), China’s GD Power, and Korea Electric Power Corporation (Kepco).
Global Lenders Back Landmark Project
The financing was secured with the participation of eight regional and international lenders, reflecting strong investor confidence in Saudi Arabia’s renewable energy transition. These include Standard Chartered, Korea Eximbank, Abu Dhabi Commercial Bank, BNP Paribas, Abu Dhabi Islamic Bank, Bank of China, HSBC, and Societe Generale.
According to Masdar, the financing will cover a substantial portion of the total project costs, setting the stage for construction and development of the gigawatt-scale solar farm.
Part of Saudi Arabia’s National Renewable Energy Programme
The 2-gigawatt Al Sadawi solar photovoltaic project falls under the kingdom’s National Renewable Energy Programme (NREP), an initiative spearheaded by the Ministry of Energy to diversify the energy mix and reduce reliance on fossil fuels.
The project is scheduled to begin generation at full capacity by early 2027, with commercial operations expected later that year. Once operational, Al Sadawi will be one of the largest solar power plants globally, playing a critical role in meeting Saudi Arabia’s clean energy goals.
Masdar’s Commitment to the Kingdom
“This announcement represents a significant milestone in Saudi Arabia’s clean energy journey,” said Mohamed Al Ramahi, Chief Executive of Masdar. “Al Sadawi will not only be among the world’s largest solar power projects but also a cornerstone of Masdar’s growing portfolio in the kingdom.”
Masdar, which first established a Riyadh office in 2022, has been rapidly scaling up its presence in Saudi Arabia. The company is aligning its projects with the kingdom’s ambitious renewable targets while also expanding its own portfolio, which aims to reach at least 100 gigawatts of renewable capacity by 2030, up from the current 20 gigawatts.
Saudi Arabia’s Expanding Renewable Footprint
The Al Sadawi project is part of a much larger push by Saudi Arabia to expand renewable generation across the kingdom. The government is targeting 40 gigawatts of solar energy by 2030 as part of its broader Vision 2030 agenda, which aims for renewables to account for 50 percent of the national energy mix by the end of the decade.
Just last month, the kingdom signed renewable energy agreements worth more than SAR 31 billion ($8.3 billion) with an Acwa Power-led consortium. These agreements cover seven projects, including:
- A 3-gigawatt solar project in Aseer’s Bisha region.
- Another 3-gigawatt solar facility in Madinah.
- The 2-gigawatt Khulis project in Makkah.
- Two projects in Riyadh (Afif 1 and Afif 2), each with 2-gigawatt capacity.
Together, these developments reflect the kingdom’s strategy to meet rising domestic electricity demand across commercial, industrial, and residential sectors, while reducing dependence on oil-powered generation.
Al Sadawi’s Development Framework
The Al Sadawi solar plant will be developed as an independent power producer (IPP) project under a build, own, and operate model. A 25-year power purchase agreement (PPA) was signed with the Saudi Power Procurement Company in late 2023, ensuring long-term stability for the project’s output.
The Eastern Province site will harness the region’s abundant solar resources, contributing significantly to the kingdom’s clean energy supply.
Masdar’s Global Renewable Expansion
Beyond Saudi Arabia, Masdar continues to invest heavily in clean energy worldwide. The company disclosed that it has already allocated $1.68 billion in green bond proceeds from 2023 and 2024 issuances to projects spanning solar, onshore and offshore wind, and energy storage.
These funds are financing initiatives not only in the UAE and Saudi Arabia but also in the U.S., Germany, the UK, Uzbekistan, Azerbaijan, and Serbia. By diversifying geographically, Masdar is positioning itself as a global clean energy leader, capable of advancing renewable capacity on multiple fronts simultaneously.
A Step Toward a Greener Future
With the Al Sadawi project now fully funded, Saudi Arabia is solidifying its position at the forefront of global renewable energy development. Backed by international lenders and powered by regional and global expertise, the solar farm underscores the kingdom’s commitment to achieving net-zero targets while meeting its rapidly growing power needs.
For Masdar, GD Power, and Kepco, the project is more than an investment—it is a showcase of how international collaboration can accelerate the transition to a cleaner, more sustainable energy future.
