Korea Electric Power Corp. (KEPCO) has completed the first round of funding for major energy projects in Saudi Arabia, according to the company. The secured project financing totals approximately 5.5 trillion won ($3.96 billion), as reported by the firm, and will support the Al Sadawi photovoltaic project along with the Rumah-1 and Al Nairyah-1 independent power plants.
The financing arrangement is based solely on the profitability and creditworthiness of the local project companies, without guarantees from KEPCO. Major contributors include the Export-Import Bank of Korea and several international financial institutions. According to the Associated Press, Korea’s Eximbank committed about $225 million specifically for the Al Sadawi solar initiative.
The Al Sadawi project, awarded through an international tender, will be Saudi Arabia’s largest solar power facility, with a planned capacity of 2 gigawatts. The project involves an investment of over $1.1 billion and will install around 3.7 million solar panels across nearly 40 square kilometers of desert. KEPCO anticipates earning about 540 billion won over the project’s 25-year operational period.
The Rumah-1 and Al Nairyah-1 plants, approved in November, are expected to provide a combined 3.6GW of power, equivalent to nearly 2.5 percent of Saudi Arabia’s national grid capacity. These facilities are projected to generate 4 trillion won in revenue over 25 years.
With financing in place, construction on these projects is set to move forward, furthering KEPCO’s role in global energy development and supporting Saudi Arabia’s shift toward renewable energy.
