For the Khazna Solar PV project, the Emirates Water and Electricity Company (EWEC) awarded the project to Engie & Masdar. This decision is a big deal, representing further momentum of the UAE’s shift to renewable energy. The project will be situated along the midway point between Abu Dhabi and Al Ain. It will have a capacity of 1.5 gigawatts (GW) and be up and running by 2028.
This ambitious initiative aims to power approximately 160,000 homes, contributing to the region’s energy needs while committing to substantial environmental goals. The Khazna Solar PV project is expected to avoid over 2.4 million tonnes of carbon emissions every year. At just under three million solar panels, it will become Engie’s largest photovoltaic (PV) installation ever.
As a result, a tripartite consortium of seven large banks, led by Citi, have won the financing for this ambitious project. This cohort features heavy hitters such as Abu Dhabi Islamic Bank and Crédit Agricole Corporate and Investment Bank. EWEC will purchase the solar facility’s output through a 30-year-long power purchase agreement, allowing it to hedge against electricity price spikes.
The Khazna Solar PV project is the first project to have implemented the regional cooperation agreement. This ambitious collaborative project is uniting partners Engie, the PV module manufacturer LONGi, and engineer-procure-construct firm PowerChina. This joint effort combines the knowledge and skills of local partners with the resources of the NPS. Combined, we’ll bring more large-scale solar projects to the Valley that will improve lives and economic development.
Engie is solely focused on accelerating a just transition to a carbon-neutral economy by 2045. This project is an important piece of the puzzle for their strategy to invest $1.9 billion in renewable energy projects. The joint venture with Masdar will increase their footprint in the Middle East and North Africa exponentially. It will better equip them to help lead the charge in moving us towards a cleaner, more distributed energy future.
“Reaching financial close on Khazna Solar PV is a major milestone and underscores Engie’s role as a trusted partner in the Middle East’s energy transition, delivering large-scale projects that strengthen energy supply security and advance decarbonisation.” – Paulo Almirante