Shanghai Electric and Masdar to Develop 2GW Solar Project in Saudi Arabia's Sadawi Region

China's engineering company Shanghai Electric signed an agreement with the UAE's state-owned renewable energy company Masdar to develop a 2 GW solar project in Saudi Arabia. The Sadawi project, covering an area of 40 square kilometers, will become Shanghai Electric's largest EPC contract globally. The project is part of Saudi Arabia's National Renewable Energy Program (NREP), aiming to build a vibrant society, a prosperous economy, and an ambitious nation.

According to the International Energy Agency (IEA), the NREP component of Vision 2030 includes a plan to increase the contribution of renewable energy to Saudi Arabia's electricity production to approximately 30%. Following the fifth NREP tender, the program has tendered 10.3 GW of renewable energy projects, including 8.1 GW of solar capacity. Shanghai Electric secured this EPC contract in November 2024 as part of the initiative.

This collaboration is part of a growing trend of cooperation between China and Saudi Arabia in the solar industry. In 2023, Saudi Arabia became China's sixth-largest importer of solar modules, with an import value of $1.34 billion. Shanghai Electric also plans to collaborate with Saudi Arabia's Almarai Group on a wind energy project in Oman.