Abu Dhabi Future Energy Company (Masdar) said on Tuesday that its 1,100-megawatt (MW) Al Henakiyah Solar PV Independent Power Plant (IPP) Project in Al Madinah province, Saudi Arabia, is expected to reach financial close in early 2024.

The estimated $1 billion project is expected to be connected to the grid in 2025, Masdar said in a press statement.

Saudi Power Procurement Company (SPPC) signed a 25-year Power Purchase Agreement (PPA) with the consortium of Masdar, France's EDF Renewables and Saudi's Nesma Renewable Energy for the project on Tuesday.

The consortium was awarded the project by SPPC after they submitted a cost-competitive bid of $16.84 per megawatt-hour (MWh).

Masdar's operational portfolio of renewable energy projects in Saudi Arabia includes the 400 MW Dumat al Jandal wind power farm and the 300MW South Jeddah Solar Park.

(Writing by Senthil Palanisamy; Editing by Anoop Menon)

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