Masdar committed to support Saudi’s clean energy objectives

Abu Dhabi Future Energy Company - Masdar, and consortium partners GD Power and Korea Electric Power Corporation announced they have reached financial close for the 2-gigawatt (GW) Al Sadawi solar photovoltaic (PV) project, a landmark project under the National Renewable Energy Programme (NREP) which is led and supervised by the Ministry of Energy.

Project financing facilities have been secured with eight leading regional and international lenders, which will cover a substantial part of the total project costs, estimated at approximately $1.1 billion.

Mohamed Jameel Al Ramahi, Chief Executive Officer, Masdar, said, “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 energisation for the project, which will help shape the future of clean energy for the Kingdom.”

The Al Sadawi Independent Power Producer (IPP) Project marks a significant milestone in the Kingdom’s journey towards its Energy Mix target of achieving 50 per cent renewable energy by 2030. Set to be one of the world’s largest solar plants, the project will contribute substantially to sustainable development and reduce carbon emissions in the Kingdom of Saudi Arabia.

Located in the Eastern Province, the project will be developed on a Build, Own, and Operate (BOO) basis, with a 25-year Power Purchase Agreement (PPA) signed with the Saudi Power Procurement Company (SPPC) late last year.

The plant is expected to commence early generation at full capacity in early 2027, with commercial operation targeted for the same year.

The participating banks in the Al Sawadi financing are Standard Chartered Bank, KEXIM, ADCB, BNP Paribas, ADIB, Bank of China, HSBC and Société Générale.

Abu Dhabi Future Energy Company – Masdar has reinforced its leadership in the global clean energy sector by deploying close to Dhs30 billion in equity investments and securing more than Dhs16.5 billion of project financing across nine countries. These accomplishments reflect Masdar’s commitment to expanding its renewable energy portfolio while driving the global energy transformation.

Since its establishment in 2006, Masdar has been a key enabler of the UAE’s vision as a global leader in sustainability and climate action. The company has developed and partnered in projects in over 40 countries, with a mandate to increase its renewable energy portfolio capacity to 100GW by 2030. Masdar contributes to accelerating development and supporting the UAE’s ambition to become the world’s largest developer, owner, and operator of renewable energy and green hydrogen. It also aids countries globally in achieving their climate neutrality plans, while increasing its project portfolio’s production capacity to 51GW by the end of 2024.

Masdar’s growth was advanced by landmark acquisitions in Greece, Spain and the United States, strengthening the company’s presence in Europe and North America, as well as breaking ground on seven major projects worldwide. These included two BESS projects in the UK, two solar projects in Azerbaijan with a combined capacity of 760MW, and the 1.5GW Al Ajban Solar Project in the UAE.

Additionally, Masdar announced the financial close of six projects, including the 1.1GW Al Henakiyah Solar Power Plant and multi-utility AMAALA sustainable project in the Kingdom of Saudi Arabia, as well as 760MW solar projects Bilasuvar and Neftchala in Azerbaijan.

Masdar also signed a Power Purchase Agreement in December 2024 for the 2GW Sadawi project in Saudi Arabia, and inaugurated the 500MW Zarafshan Wind Farm in Uzbekistan, now the largest operation in Central Asia.

Meanwhile earlier in January Abu Dhabi Future Energy Company – Masdar, announced today preferred suppliers and contractors to support the development of the world’s first large-scale ‘round the clock’ gigascale project, which will combine solar photovoltaic (PV) power and battery storage to deliver uninterrupted renewable energy.

JA Solar and Jinko Solar, two of the world’s largest PV module suppliers, and CATL, the world’s largest battery manufacturer and a leading battery energy storage system (BESS) supplier, are preferred suppliers for the project, Masdar announced today at Abu Dhabi Sustainability Week (ADSW).  Larsen & Toubro and POWERCHINA have been selected as preferred Engineering, Procurement and Construction (EPC) contractors for the project, which will be built in Abu Dhabi.

Letters of Award for the EPC contractors were signed today in a special ceremony at the Masdar Pavilion at ADSW, with Abdulaziz Alobaidli, Chief Operating Officer, Masdar, signing both. Yu Feng, President of HDEC International, signed for POWERCHINA, with Gao Fei, Vice President of POWERCHINA Mena Headquarter, witnessing.

WAM