A consortium led by EDF Power Solutions and SPIC Huanghe Hydropower Development Co ( SPIC HHDC ), in partnership with Saudi Aramco Power Company ( Sapco ), has achieved financial close on two solar power projects in Saudi Arabia.

The 1,000-megawatt Al Masa'a Solar Power Plant and the 400MW Al Henakiyah-2 Solar Power are being developed under 25-year power purchase agreements ( PPAs ) signed with the Saudi Power Procurement Company ( SPPC ), under which the consortium will be responsible for the design, financing, construction, and long-term operation of the facilities.

Located in Hail Province, approximately 590 kilometres north of Riyadh, the Al Masa'a project is expected to achieve commercial operation in the third quarter of  2027. The Al Henakiyah-2 plant, situated around 720 kilometres west of the capital in Madinah Province, is expected to become operational in early 2027.

The financing of the projects was supported by a group of lenders, including Saudi Investment Bank, Bank of China, Société Générale, BNP Paribas, Abu Dhabi Commercial Bank, and First Abu Dhabi Bank.

The solar power plants are part of the National Renewable Energy Programme ( NREP ), under the supervision of the Ministry of Energy. They contribute to the kingdom’s strategic objective of increasing the share of renewables in the electricity generation mix to around 50% by 2030, while also supporting the Liquid Displacement Programme and broader decarbonization goals.

"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,” says Cédric Le Bousse, EDF Power Solutions executive vice-president for Europe, the Middle East, and Central Asia.

“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 3,500 megawatts. 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.”

During the construction phase, a significant portion of equipment, materials, and services will be sourced from local companies. In addition, during the first five years of operations, Saudi nationals will form a significant portion of the workforce, with this percentage expected to increase over the plants' operational lifespan.

“This investment with EDF and SPIC represents a pivotal step towards positioning Aramco’s new energies business at the forefront of a rapidly growing sector, and advancing the expansion of our portfolio in renewables, carbon capture and storage, and lower-carbon hydrogen,” says Waleed A. Al Saif, Aramco‘s senior vice president for new energies. “It reinforces our commitment to a diversified energy future, in alignment with our long-term vision to meet rising energy demand.”