Abu Dhabi Future Energy Company PJSC – Masdar, in partnership with GD Power and Korea Electric Power Corporation, announced that it has reached financial close for the Al Sadawi photovoltaic project with a capacity of 2 gigawatts (GW). The project, part of the National Renewable Energy Program (NREP), overseen by the Saudi Ministry of Energy, marks a significant milestone in the development of the solar sector in the country.
Located in the Eastern Province of Saudi Arabia, the plant will be developed under the Build, Own, and Operate (BOO) model, with a 25-year Power Purchase Agreement (PPA) signed with the Saudi Power Procurement Company (SPPC). Full commissioning is scheduled for early 2027.
Eight banks mobilized for international financing
The total cost of the project is estimated at approximately $1.1 billion. A significant portion of this amount will be covered through financing facilities secured from eight regional and international banking institutions. Among the banks involved are Standard Chartered Bank, Export-Import Bank of Korea (KEXIM), Abu Dhabi Commercial Bank (ADCB), BNP Paribas, Abu Dhabi Islamic Bank (ADIB), Bank of China, HSBC, and Société Générale.
These financial institutions have worked closely with the consortium and the Saudi Power Procurement Company to finalize the financing terms. The contractual structure follows an Independent Power Producer (IPP) model, providing lenders with return conditions aligned with the project’s risk profile.
A project aligned with Saudi Arabia’s energy strategy
The Al Sadawi Solar PV Project is aligned with the Kingdom’s energy strategy, which aims to achieve an energy mix with 50% renewable sources by 2030. With its 2 GW capacity, the plant will rank among the world’s largest solar projects, contributing significant capacity to the national grid in the coming years.
The development of this infrastructure supports the Saudi government’s goal of diversifying its electricity production sources. The consortium plans to launch initial full-capacity production by early 2027, in accordance with the contractual schedule.
