China’s Shanghai Electric has signed partnership agreements with Masdar and Mawarid Group for the 2 GW Sadawi solar project in Saudi Arabia, and a wind energy project in Oman. The signings come at a critical time in Saudi’s and Oman’s sustainability initiatives. Saudi Arabia’s Vision 2030 and Oman’s Vision 2040 initiatives are aimed at making sustainability and technological transformations in the Middle East. These transformations will ripple their effects to various sectors and industries in the region, and the latest tri-lateral collaboration is only testament to its importance.

Sadawi Solar Project Factsheet

Location: Dumat Al Jandal, Kingdom of Saudi Arabia

Developer: Masdar (Abu Dhabi Future Energy Company)

EPC contractor: Shanghai Electric

Solar farm area: 40 km2

Installation capacity: 2 Gigawatts (GW)

Annual producion: 6 billion kWh

Project commissioning date: August 2027

* Early generation at full capacity by May 2026

More on the Sadawi solar project

Saudi Arabia’s plans for the 2 GW Sadawi solar project also sets the bar high for the Chinese contractor. This is so far, Shanghai Electric’s largest engineering, procurement, and construction (EPC) project in the world.

Once commissioned, Saudi’s Sadawi solar project will not only cut CO2 emissions from the West Asian country by 3 million tons, but also supply 700,000 homes in the Kingdom with clean solar energy. This tallies with the annual supply value from the 2 GW solar farm estimated to be at 6 billion kWh. The Sadawi solar project also holds a special part in the Kingdom’s energy portfolio as it features in its National Renewable Energy Program.

China’s play in Oman’s wind project

As part of the deal, Shanghai Electric will supply wind turbines and help with renewable energy technology. The Chinese multinational power generation and electrical equipment manufacturing company will also leave prints in the design of a localized factory.

Shanghai Electric’s partnership with Mawarid Group is strategically aimed at harnessing Oman’s natural resources. It is also geared towards the creation of a local supply chain. Additionally, the partnership will also promote long-term economic growth in the West Asian country lying on the Arabian Peninsula.

China’s Saudi and Oman partnership

At the signing, the 2 GW Sadawi solar project was described as a “benchmark demonstration project”. The project according to Wu Lei will, “contribute more to the global energy transition”. Wu Lei is Shanghai Electric’s chairperson.

Speaking of the duo’s future relationship, Masdar’s CEO, Mohamed Jameel Al Ramahi, courted the idea of more project partnerships with Shanghai Electric especially in Saudi’s renewable energy sector. “[Masdar] … looks forward to further deepening cooperation with them [Shanghai Electric] in wind power, photovoltaics, energy storage, and other fields in the future to jointly promote the transformation of the global energy structure.”, said Al Ramahi.

The same sentiment was also echoed by Oman’s Minister of Energy and Minerals, Salim Al Aufi. Wu Lei was also enthusiastic of the idea. Especially for the creation of a “new chapter in China-Arab energy cooperation”.