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Masdar eyes Q2 financial close for $6bn project

27 January 2025

 

Abu Dhabi Future Energy Company (Masdar) expects to reach financial close for the contract to develop the $6bn solar plus battery energy storage system (bess) plants in Abu Dhabi in the second quarter of the year.

The project comprises 5,200MW solar photovoltaic (PV) and 19 gigawatt-hour (GWh) bess plants, which will supply 1GW of round-the-clock renewable energy.

Masdar and Emirates Water & Electricity Company (Ewec) aim to reach financial close for the project by Q2, Abdulaziz Alobaidli, Masdar's chief operating officer, told MEED.

MEED understands the renewable energy developer, which aims to achieve 100GW in gross capacity by 2030, is undertaking discussions with several banks to supply long-term project finance.

Alobaidli said the project will be structured as a classic public-private partnership (PPP), to be funded by equity and syndicated debt. 

The project will help power advancements in artificial intelligence and emerging technologies, supporting the delivery of the UAE National Strategy for Artificial Intelligence 2031 and the Net Zero by 2050 strategic initiative, UAE President Sheikh Mohamed Bin Zayed Al-Nahyan announced in a social media post on 14 January.

Masdar selected India’s Larsen & Toubro and Beijing-headquartered PowerChina to undertake the engineering, procurement and construction (EPC) contract for the project.

Masdar also picked Shanghai-based Jinko Solar and Beijing-headquartered JA Solar to supply solar PV modules.

Another Chinese firm, Fujian-based Contemporary Amperex Technology Company Limited (CATL), will supply the bess for the combined solar and bess project.

Jinko Solar and JA Solar are the preferred suppliers for solar PV modules amounting to 2.6GW each, with maximum efficiency and production for 30 years.

CATL, as a preferred supplier for the bess, will supply its Tener technology for the 19GWh bess component of the project.

MEED first reported on the planned project in October, when Masdar started approaching potential co-developers and investors.

Abu Dhabi currently has close to 2,500MW of solar installed capacity. Its third utility-scale solar independent power project (IPP), the 1,500MW Al-Ajban solar PV, is under construction. The bid evaluation process is under way for the 1,500MW Al-Khazna solar PV and bids are due imminently for the emirate’s first bess IPP, which has a capacity of 400MW.

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Jennifer Aguinaldo

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