EDF power solutions and SPIC Huanghe Hydropower Development (SPIC HHDC) has formed a consortium in partnership with Saudi Aramco Power Company (SAPCO), a subsidiary of Aramco, has reached financial close on two solar power projects located in Saudi Arabia.
This solar power project financing will support the development of the Al Masa’a and Al Henakiyah-2 plants, which together will add 1,400MW of solar capacity.
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The Al Masa’a solar plant will have a capacity of 1,000MW and is located in Hail province, about 590km north of Riyadh.
It is expected to achieve commercial operation in the third quarter (Q3) of 2027.
The Al Henakiyah-2 solar plant with a capacity of 400MW is situated in Madinah province, around 720km west of the capital.
It is set to become operational in Q1 2027.
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By GlobalDataBoth projects will be developed under 25-year power purchase agreements (PPAs) with the Saudi Power Procurement Company.
Under these agreement, the consortium will handle the design, financing, construction, and long-term operation of the facilities.
A group of local and international financial institutions, including Saudi Investment Bank, Bank of China, Société Generale, BNP Paribas, Abu Dhabi Commercial Bank, and First Abu Dhabi Bank, are providing the project financing.
This financial participation highlights the growing confidence in Saudi Arabia’s renewable energy sector and its investment environment.
The two solar power plants are part of the Saudi Arabia’s National Renewable Energy Programme, led by the Ministry of Energy.
These projects contribute to Saudi Arabia’s goal to increase the share of renewables in its electricity generation mix to around 50% by 2030.
They also support the liquid displacement programme and the country’s decarbonisation goals.
EDF power solutions Europe, Middle East, Central Asia executive vice-president Cédric Le Bousse said: “Reaching financial close on these two major solar projects represents a significant milestone and demonstrates the continued confidence of financial institutions in Saudi Arabia’s renewable energy sector. The Al Masa’a and Al Henakiyah-2 projects will further strengthen EDF power solutions’ position in the kingdom, bringing our total renewable capacity to over 3,500MW.
“These projects exemplify EDF power solutions’ long-term commitment to supporting Saudi Arabia’s Vision 2030 and the Saudi Green Initiative, as we work together to accelerate the kingdom’s energy transition and build a competitive and sustainable energy sector.”
Once commissioned, the two plants are expected to produce enough clean energy to supply over 240,000 Saudi households each year and cut approximately 3 million tonnes of carbon dioxide emissions annually.
The construction phase will see a significant portion of equipment, materials, and services sourced from local companies, supporting the local economy.
In the first five years of operations, Saudi nationals will make up a substantial portion of the workforce at both plants, with this percentage expected to rise over the operational lifespan.
