A consortium of UAE's clean energy company Masdar, China’s GD Power and Korea Electric Power Corporation (Kepco) has been granted the contract to develop the 2-gigawatt Al Sadawi solar project in Saudi Arabia.
Masdar to Commission Al Sadawi Solar Project in 2027
The Al Sadawi solar project is the largest facility awarded in the fifth round of Saudi Arabia's National Renewable Energy Programme (NREP) announced last month. This round aimed to allocate 3.6GW of new solar power capacity. Masdar anticipates the project's commissioning in the second quarter of 2027.
The Masdar consortium comprising GD Power from China and Korea Electric Power Corporation (KEPCO) was one of two groups selected to manage the solar project. With this award, Masdar aims to strengthen its presence in Saudi Arabia. The company has already completed the 300MW South Jeddah Noor solar project and has the 1.1GW Al Henakiyah and 250MW AMAALA solar-plus-storage projects in its pipeline.
Saudi Signs PPA with Masdar for Al Sadawi Project
In conjunction with the Al Sadawi announcement, the Saudi Power Procurement Compan—a state-owned entity—signed a Power Purchase Agreement (PPA) with the Masdar consortium. Masdar has previously partnered with the Saudi Power Procurement Company securing a PPA for the South Jeddah Noor facility. To date, the Saudi government has signed agreements for 25 renewable energy projects totalling a combined capacity of 23 GW.
These deals mark Saudi Arabia’s latest investment in renewable energy as it aims to achieve its Vision 2030 goal of generating half of its electricity from renewables by the end of the decade. However, this goal may prove challenging as the International Energy Agency (IEA) reported in 2022 that oil and natural gas accounted for 99.4% of the country’s domestic electricity generation.
The Saudi Power Procurement Company also revealed several PPAs for fossil fuel projects, including the Rumah and Nairyah thermal plants. Although these projects may incorporate carbon capture and storage technology, they have a combined capacity of 7.2 GW—nearly four times the capacity of the Al Sadawi project.
Saudi Solar Projects Drive 2030 Clean Energy Goals
Other solar projects offered in the auction include a 1GW facility at Al Masaa in Hail province, a 400MW plant at Al Henakiyah in Madinah province and a 300MW project at Rabigh in Makkah province.
A 1-GW plant can supply power to approximately 750,000 homes. Saudi Arabia aims to generate 50% of its electricity from clean sources by the end of this decade and invest over $180 billion. To meet this ambitious target, the country will need to add more than 20 GW of capacity annually.