Masdar Consortium Secures Funding for Saudi Solar Giant

• Powering 700,000 homes, the 2-GW Al Sadawi solar project in Saudi Arabia sets a new benchmark for giga-scale solar, driving renewable energy goals with cutting-edge technology.

A Masdar-led consortium, including China’s GD Power Development and Korea Electric Power Corporation, has secured financing for the 2-GW Al Sadawi solar project in Saudi Arabia. The project, costing approximately USD 1.1 billion, will be funded by lenders such as Standard Chartered, KEXIM, and HSBC. Located in Saudi Arabia's Eastern Province, Al Sadawi is expected to begin early generation before full operations in 2027. It features a 25-year power purchase agreement with the Saudi Power Procurement Company and will be developed on a build-own-operate basis.

The project will use Arctech's SkyLine II tracker technology, designed for desert conditions, and spans 40 square kilometers. It aims to generate over six billion kWh annually, powering around 700,000 households. Al Sadawi supports Saudi Arabia's renewable energy goals and demonstrates the viability of giga-scale solar projects in the Gulf. The project aligns with proven project-finance practices and addresses supply-chain challenges, setting global benchmarks for low-cost, utility-scale solar. As construction progresses, key milestones include grid-code compliance testing and phased energization.

How will the Al Sadawi solar project impact Saudi Arabia's renewable energy goals?

• Contribution to Renewable Energy Targets: The Al Sadawi solar project will significantly contribute to Saudi Arabia's goal of generating 50% of its energy from renewable sources by 2030, as outlined in the Vision 2030 plan.
• Reduction in Carbon Emissions: By generating over six billion kWh annually, the project will help reduce the country's carbon footprint, supporting Saudi Arabia's commitment to environmental sustainability and reducing reliance on fossil fuels.
• Economic Diversification: The project aligns with Saudi Arabia's efforts to diversify its economy away from oil dependency, creating new jobs and fostering growth in the renewable energy sector.
• Technological Advancement: Utilizing advanced technologies like Arctech's SkyLine II tracker, the project showcases Saudi Arabia's commitment to adopting cutting-edge solutions for efficient energy production in challenging desert environments.
• Energy Security: By increasing the share of domestically produced renewable energy, the project enhances Saudi Arabia's energy security and reduces vulnerability to global oil market fluctuations.
• Global Leadership: The successful implementation of the Al Sadawi project positions Saudi Arabia as a leader in large-scale solar energy projects, setting benchmarks for other countries in the region and globally.
• Infrastructure Development: The project will drive infrastructure development in the Eastern Province, potentially leading to further investments in renewable energy and related sectors.
• International Collaboration: The involvement of international companies and financiers highlights Saudi Arabia's openness to global partnerships, fostering knowledge transfer and innovation in the renewable energy field.