The Saudi Power Procurement Company (SPPC) has selected a consortium of developers comprising Abu Dhabi Future Energy Company (Masdar), KEPCO, and GD Power Development Company to commission the 2 GW Al Sadawi Solar Project in Saudi Arabia.

Scheduled for commercial operation in the second quarter of 2027, the project will deliver clean energy at a levelized cost of electricity of $1.2926/kWh.

Part of Round 5 of the National Renewable Energy Program (NREP), the Al Sadawi Solar Project is a key milestone in Saudi Arabia’s renewable energy ambitions.

By the end of 2024, Saudi Arabia is expected to have signed agreements for 25 renewable energy projects, spanning various regions and collectively contributing approximately 23 GW of generation capacity.

Together with the Rumah and Nairyah Thermal Energy Projects, the Al Sadawi Solar Project represents a total investment of around SAR35 billion (~$9.3 billion). These initiatives reflect Saudi Arabia’s commitment to achieving the goals of Vision 2030.

The NREP is focused on establishing an optimal energy mix, targeting equal contributions from gas and renewable energy for electricity production by 2030. Additionally, the program aims to phase out the use of liquid fuels in the country’s electricity generation and other sectors, aligning with its broader environmental and economic objectives.

In September, SPPC invited bids for solar photovoltaic and wind energy projects totaling 4,500 MW under the NREP’s sixth round.

In July last year, ACWA Power, a Saudi energy company, secured $2.2 billion for the 2,060 MW Al Shuaibah 1 and 2 solar projects with a 35% equity stake, supporting Saudi Arabia’s aim to generate 15.1 TWh of renewable energy annually by 2024.

Saudi Sovereign Fund’s subsidiary Badeel and ACWA Power are investing $3.25 billion to develop 4.55 GW solar projects in the country under NREP.