The Al Sadawi Independent Power Producer project will be constructed on a build, own and operate basis.
The $1.1 billion project is financed through agreements with eight regional and international lenders, including ADCB, ADIB, Bank of China, BNP Paribas, HSBC, KEXIM, Société Générale, and Standard Chartered Bank. The Al Sadawi project, developed on a build, own, and operate model, is expected to significantly reduce carbon emissions while contributing to Saudi Arabia’s clean energy objectives.
Construction is underway, with initial power generation set to reach full capacity by early 2027, aligning with the start of commercial operations. The Saudi Power Procurement Company signed a 25-year power purchase agreement in late 2024 to acquire the energy produced by the facility.
Masdar CEO Mohamed Jameel Al Ramahi stated: “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 project strengthens Masdar’s presence in Saudi Arabia’s renewable energy sector, complementing its global efforts. For instance, in July 2025, Masdar and Iberdrola secured $4.87 billion for the 1.4-gigawatt East Anglia THREE offshore wind farm in the UK, demonstrating the company’s commitment to advancing clean energy worldwide.
By leveraging international partnerships and innovative financing, the Al Sadawi solar project positions Saudi Arabia as a leader in renewable energy development. Its completion will mark a milestone in the country’s efforts to diversify its energy mix and promote sustainable growth, while fostering collaboration among global energy firms.
