Recently, GD Power Development Co.,Ltd., in partnership with Abu Dhabi Future Energy Company (Masdar) and Korea Electric Power Corporation (KEPCO), announced the financial closure of the 2 GW Al Sadawi solar project in the Eastern Province of Saudi Arabia. The project is expected to commence operations in 2027.
The Al Sadawi project is a flagship initiative under Saudi Arabia’s National Renewable Energy Program (NREP) and a key step toward the country’s goal of achieving 50% renewable energy in its power mix by 2030. GD Power, through its wholly-owned subsidiary China Power Hong Kong Overseas Investment Limited, holds a 40% stake in the project, with Masdar and KEPCO also participating as co-investors and developers.
The total investment in the project is approximately $1.1 billion, financed by a syndicate of eight regional and international banks, including Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Bank of China, and BNP Paribas. Developed under a Build-Own-Operate (BOO) model, the Al Sadawi project signed a 25-year Power Purchase Agreement (PPA) with the Saudi Power Procurement Company (SPPC) at the end of 2024. The levelized cost of electricity (LCOE) is set at 1.2926 US cents per kWh, demonstrating strong economic competitiveness.
The project is expected to reach full capacity in early 2027 and begin commercial operation within the same year. With an estimated annual electricity output of 6.003 billion kWh, it will significantly support Saudi Arabia’s energy transition and carbon reduction goals. GD Power is a core power generation subsidiary under China Energy Investment Corporation. In the first three quarters of 2024, the company reported revenue of RMB 133.862 billion and a net profit attributable to shareholders of RMB 9.191 billion, reflecting its robust financial strength.
