On the evening of January 16, State Power Investment Corporation (SPIC) announced that its wholly-owned subsidiary, SPIC Hong Kong Overseas Investment Co., Ltd. ("SPIC Hong Kong"), has entered into a joint venture with the Abu Dhabi Future Energy Company and Korea Electric Power Corporation (KEPCO) to develop the 2-gigawatt photovoltaic (PV) solar project in Sadawi
Source: Securities Daily
On the evening of January 16, State Power Investment Corporation (SPIC) announced that its wholly-owned subsidiary, SPIC Hong Kong Overseas Investment Co., Ltd. ("SPIC Hong Kong"), has entered into a joint venture with the Abu Dhabi Future Energy Company and Korea Electric Power Corporation (KEPCO) to develop the 2-gigawatt photovoltaic (PV) solar project in Sadawi, located in Saudi Arabia’s Eastern Province. SPIC Hong Kong holds a 40% stake in the project.
The Sadawi solar project, with a total installed capacity of 2,000 megawatts, will be one of the largest solar power initiatives in Saudi Arabia. According to SPIC’s announcement, key preliminary work — including system design, transmission infrastructure, plant location, land acquisition, and investment structure — has already been completed. The project’s total investment is estimated at $1.12 billion, with equity financing making up approximately 32.38%. Based on this total investment and SPIC Hong Kong’s stake, SPIC will allocate around $144 million in capital to its subsidiary.
In its announcement, SPIC stated that the project is expected to generate an average of 6.003 billion kilowatt-hours of electricity annually over its 25-year operational period. With a levelized cost of electricity (LCOE) of 1.292629 cents per kilowatt-hour, the project is projected to deliver returns that meet the company’s investment criteria. Saudi Arabia, as the largest economy in the Middle East and North Africa (MENA) region, offers a stable political climate, a favorable economic environment, and substantial potential in the renewable energy market. The Sadawi project is seen as both technically and economically viable, with manageable risks. It aligns with China’s Belt and Road Initiative and SPIC’s international expansion strategy.
Industry experts suggest that Chinese companies, with their strong technological expertise, industry experience, cost advantages, and market presence, are well-positioned to capitalize on international renewable energy opportunities, gaining significant market share and growth potential.