Masdar, a clean energy company based in the UAE, has partnered with Chinese firm GD Power and South Korea’s KEPCO to develop a 2 GW solar project in Saudi Arabia. This project is set to be located at Al Sadawi, around 500km north of Riyadh, and will provide electricity to the Eastern Province for 25 years starting from the second quarter of 2027.
Saudi Arabia’s Renewable Energy Initiative
This solar project is a key part of Saudi Arabia’s extensive national renewable energy program. It forms a significant element of the fifth round of a 3.7 GW auction organized by the Saudi Power Procurement Company. The initiative is integral to the Kingdom’s plan to enhance its renewable energy capacity, with the understanding that one GW can power about 750,000 homes.
For the Al Sadawi project, the Masdar consortium proposed a competitive rate of $1.29 per kilowatt/hour, aiding Saudi Arabia’s shift towards clean energy.
Saudi Arabia’s Energy Ambitions
By 2030, Saudi Arabia aims to produce 50% of its electricity from renewable sources, backed by a substantial $180 billion investment. To achieve this, the country needs to add over 20 GW of renewable energy capacity annually, with a target of 130 GW by 2030.
As of now, the Kingdom has 8.33 GW of renewable capacity. By September 2024, the Saudi Power Procurement Company had awarded more than 19 GW of projects under the national program.
Masdar’s Global Energy Goals
Masdar, jointly owned by ADNOC and Mubadala, has set a global target to generate 100 GW of renewable energy capacity by 2030. Currently, it maintains 22 GW across 83 projects worldwide.
Beyond solar, Masdar has expanded its renewable portfolio, including operating Saudi Arabia’s first wind farm since 2022—a 400 MW facility in the Al Jouf region, co-owned with EDF Renewables of France.
