Shanghai Electric has been selected as the contractor for Saudi Arabia’s largest solar power project, in which Korea Electric Power Corporation (KEPCO) is participating. The Chinese firm will work alongside local renewable energy company Masdar to build a 2GW solar power plant. With the contractor now confirmed, construction is expected to begin soon.
According to Shanghai Electric on the 27th, the company signed an engineering, procurement, and construction (EPC) contract with Masdar earlier this month for the “Saudi Round 5 Sadawi Project.”
The project involves building a 2GW solar facility approximately 324.4 miles north of Riyadh. Covering around 10,038 acres, the site will feature 3.7 million solar panels and will supply electricity locally for 25 years. The estimated project cost is about $1.04 billion.
Masdar and KEPCO formed a consortium and secured the project in November last year, along with signing a power purchase agreement. With Shanghai Electric onboard as the EPC contractor, construction is expected to ramp up. Although the detailed schedule has not been disclosed, the plant is projected to generate more than 6 billion kWh annually, enough to power approximately 700,000 households. It is also expected to cut carbon emissions by more than 3 million tons per year.
Wu Lei, Chairman of Shanghai Electric, stated, “This partnership marks a new beginning for broader collaboration between Shanghai Electric and Masdar. It also represents a significant milestone for Shanghai Electric’s entry into the Middle East renewable energy market.” He added, “We hope to jointly contribute to the global energy transition.”
Saudi Arabia is aggressively expanding its renewable energy sector as part of efforts to diversify its energy mix. The kingdom plans to add 20GW of renewable capacity annually, aiming for a total of 130GW by 2030. The Saudi Power Procurement Company (SPPC) is advancing its sixth round of renewable energy projects, which includes solar plants at Najran (1,400MW), Samatah (600MW), Addarbah (600MW), and As Suqah (400MW), along with a 1,500MW wind power project at Duwadimi. In November last year, SPPC announced the companies that passed the prequalification phase, which included KEPCO, Korea Western Power, and POSCO International.
