meed-logo

line1 line2 line3
SIGN IN / REGISTER

Masdar meets renewable’s moonshot challenge

31 January 2025

 

Register for MEED’s 14-day trial access 

Abu Dhabi Future Energy Company (Masdar) is off to a great start this year by taking on a project that addresses what UAE Minister of Industry and Advanced Technology Sultan Al-Jaber describes as the “moonshot challenge of our time”, the intermittency of renewables.

Masdar, along with state utility Emirates Water & Electricity Company (Ewec), announced the project on 14 January. The $6bn project comprises 5,200MW solar and 19 gigawatt-hour (GWh) battery energy storage system (bess) plants.  

It is designed to deliver up to 1,000MW of uninterrupted “baseload” power from a renewable source, a first in the world in terms of its scale.

“The country leadership’s will to deploy cutting-edge technology despite perceived risks, the growing experience of Masdar in developing battery energy storage projects globally, along with the decline in battery prices helped expedite the project,” Abdulaziz Alobaidli, chief operating officer of Masdar, tells MEED. “It’s a major achievement, over 15 years since the first single-site 10MW project was procured in Abu Dhabi.”

It has a lot to do with our culture to never say no to the impossible 

Alobaidli was referring to Masdar’s first 10MW solar photovoltaic (PV) plant located on the north side of Masdar City, which was connected to the Abu Dhabi electricity grid in April 2009.

The executive says the 5.2GW/19GWh project was fast-tracked thanks to the broader collaboration of the key relevant stakeholders who facilitated the overall permitting proceedings.

He also stressed that they have obtained the necessary experience by developing renewable energy projects in developed and developing countries over the past decade and a half, with their current portfolio sitting at around 32GW.

“It has a lot to do with our culture to never say no to the impossible,” explains Alobaidli.

“We solved a two-decade problem by jointly evaluating the technical and commercial feasibility of the project, doubling down on our global development experience, and the strategic relationship we have built with key solar and bess suppliers … it helped that the battery technology has reached a desired level of cost competitiveness along with improved efficiency.

“The collaborative spirit of our client, Ewec, has facilitated the development of the project and gave us confidence that we can bring it to the finish line.”

Fast-track project

Masdar announced the selection of contractors and sub-contractors for the project a few days after its launch.

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

Masdar also picked Shanghai-based Jinko Solar and Beijing-headquartered JA Solar to supply solar PV modules. They will supply solar PV modules amounting to 2.6GW each, with maximum efficiency and production for 30 years.

Another Chinese firm, Fujian-based Contemporary Amperex Technology Company Limited (CATL), will supply its Tener product line for the bess plant.

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

It is being deployed on a fast-track basis, with financial close expected by the second quarter of 2025 and commercial operations set for 2027.

Alobaidli says they are in the process of deployment and starting the mobilisation of contractors, following months of technology assessments and technical workshops.

He also says Masdar is open to considering co-investors or codevelopers in the project “if they will complement” its capability to deliver the project.  

Masdar has also engaged several banks and lenders, which have been conducting due diligence on the project, particularly on the selected battery technology.

The executive, who previously served as general manager of Masdar subsidiary, Shams Power Company, says declining battery prices provide significant opportunities for their adoption at larger scale and long-hours applications.

“This is significant for the industry, and we see demand and supply growing, including the number of suppliers in the market. Security of supply and more competitive battery price is key.”

AI connection

MEED first reported on the planned round-the-clock renewable project in October last year. At the time, sources indicated that the project was envisaged to support the state’s artificial intelligence (AI) strategy.

This was confirmed by a social media post on 14 January, when UAE President Sheikh Mohamed Bin Zayed Al-Nahyan said the project would help power advancements in AI and emerging technologies in addition to being a significant step on the UAE’s journey towards net zero.

Alobaidli says the project, which will be the first of many, “will definitely unlock opportunities for AI and other industries, which require base and round-the-clock load”.

Global expansion

While the 5GW/19GWh project is the largest single project by far to be deployed by Masdar, the experiences it gained by growing organically and through mergers and acquisitions, especially over the past decade, should help ensure it delivers the project within time and budget.

The project’s execution is also unlikely to hamper Masdar’s ongoing global expansion, given its goal to expand its renewable energy portfolio to 100GW by 2030.

Masdar has been expanding its global footprint as well as the type of assets it deploys or acquires, which range from onshore and offshore solar, onshore and offshore wind and, now, battery energy storage plants.

It has been bidding for new projects close to home, such as in Saudi Arabia and Oman, as well as in developing countries or acquiring stakes in projects across nearly every region of the world, from the Philippines, Malaysia and Indonesia in Southeast Asia, to Africa, more mature markets in Europe such as Greece and Spain, and the Americas.

“We are not just running after capacity. We look at profitability and the impact of these acquisitions on our earnings and P&L,” explains Alobaidli. “More importantly, we focus on the impact of these projects on the local communities.”

Alobaidli stresses that Masdar is focusing on prudent risk-reward factors as it expands its operations to avoid overexposure and ensure every deal is robust and backed by objective risk analysis.

“We are backed by three very strong institutions,” he points out, referring to Abu Dhabi National Oil Company, Abu Dhabi National Energy Company (Taqa) and sovereign wealth fund Mubadala. “So every investment opportunity is thoroughly assessed to ensure it meets our growth objectives and stakeholders’ expectations.”

READ MEED’s YEARBOOK 2025

MEED’s 16th highly prized flagship Yearbook publication is available to read, offering subscribers analysis on the outlook for the Mena region’s major markets.

Published on 31 December 2024 and distributed to senior decision-makers in the region and around the world, the MEED Yearbook 2025 includes:

> GIGAPROJECTS INDEX: Gigaproject spending finds a level
https://image.digitalinsightresearch.in/uploads/NewsArticle/13347001/main.jpg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • UAE to add Ajman to its Etihad Rail passenger network

    3 July 2026

     

    Register for MEED’s 14-day trial access 

    As part of ongoing procurement for the UAE’s national passenger rail rollout, Abu Dhabi’s Etihad Rail is adding Ajman to the planned network, extending coverage to five of the seven emirates.

    Etihad Rail tendered a design-and-build contract in late June to construct a section of the network to Hamriyah in Ajman, branching off from its existing freight network.

    The scope includes civil and track works, the construction of a passenger station and other associated infrastructure.

    Contractors have until 27 July to submit their proposals.

    The extension to Ajman brings Etihad Rail’s passenger network closer to the wider Northern Emirates, where Umm Al-Quwain and Ras Al-Khaimah still sit outside the current rollout, despite lying along the existing freight corridor, which currently terminates at Al-Ghail dry port in Ras Al-Khaimah.

    The sequencing of the Ajman section could pave the way for further extensions if this section proves successful.

    The latest development follows Etihad Rail’s start of passenger rail operations on 30 June 2026, with an introductory operational phase on the Abu Dhabi-Fujairah route.

    The passenger roll-out marked a major milestone for Etihad Rail, which was established in 2009 and tasked with delivering a roughly 900-kilometre railway linking key cities, ports and industrial hubs from Ghuwaifat to Fujairah on the eastern coast.

    The launch came less than five years after the UAE announced its ambition to create a national passenger railway under the country’s “Projects of the 50” programme, aiming to support economic diversification and sustainable development.

    According to Etihad Rail, passenger services will be introduced in planned phases through 2026 and 2027:

    • 23 June 2026: Passenger tickets went on sale via the Etihad Rail app and a dedicated booking website (as well as the contact centre for certain fares)
    • 30 June 2026: Introductory operational phase begins with services between Abu Dhabi and Fujairah only
    • 30 September 2026: Passenger rail services formally commence and expand to include Abu Dhabi, Dubai, Al-Dhaid and Fujairah
    • 30 December 2026: Services extend to Al-Dhafra stations
    • 30 March 2027: Services expand further to include Sharjah

    In response to MEED’s request for comment on the Ajman section, Etihad Rail said:

    “Etihad Rail remains committed to supporting the UAE’s vision for an integrated, efficient and sustainable transport network that enhances connectivity between communities and supports the nation’s long-term economic and social development.

    “As previously announced, Etihad Rail’s passenger services are being introduced in phases, with further expansion planned over time. We do not comment on market speculation, commercial discussions, procurement activity, or projects that have not been formally announced.

    “Any updates regarding future developments will be communicated through official channels in due course.”

    Passenger rail operations

    Tickets for the Abu Dhabi-Fujairah route are already on sale through the operator’s digital platforms.

    Customers can book tickets up to four weeks before travel. Tickets for new destinations will be released in line with the phased roll-out.

    At this point, Etihad Rail’s passenger service will officially connect 11 cities and regions across the UAE, supported by a station network that links key urban and economic centres. The station list includes:

    • Abu Dhabi – Mohamed Bin Zayed City Station
    • Dubai – Al-Yalayis Station
    • Sharjah – University City Station
    • Fujairah Station
    • Al-Dhaid Station
    • Al-Dhannah Station
    • Madinat Zayed Station
    • Liwa Station
    • Al-Mirfa Station
    • Al-Sila Station
    • Al-Faya Station
    Construction history

    The first phase of Etihad Rail comprised a 264-kilometre freight line spanning Shah, Habshan and Ruwais. This was primarily delivered by a consortium of Italy’s Saipem and Maire Technimont, alongside UAE-based Dodsal Engineering & Construction.

    Stage 2 of Etihad Rail comprises four major packages.

    India’s Larsen & Toubro worked with Chinese state-owned PowerChina International on the design and construction of freight facilities for Stage 2 under a AED1.87bn contract.

    A joint venture comprising China State Construction Engineering Corporation and South Korea’s SK Engineering worked on the first of four civil and track works packages for the 139km line between Ghuwaifat and Ruwais. The contract, worth AED1.5bn, was confirmed in March 2019.

    Packages B and C of Stage 2 were awarded to a joint venture of Beijing-based China Railway Construction Corporation and local Ghantoot Transport & General Contracting in June 2019.

    Both packages are understood to have a combined value of AED4.4bn and cover 310km of the rail network.

    In December 2019, a joint venture of CRCC and local National Projects & Construction was formally confirmed for the AED4.6bn Package D.

    Package D will link the ports of Fujairah and Khorfakkan to the network at the Dubai-Sharjah border and stretches over a distance of 145km.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17525193/main.jpg
    Yasir Iqbal
  • IHC deepens India links with $11.5bn aluminium venture

    3 July 2026

    Abu Dhabi’s International Holding Company (IHC) has struck its third major partnership with India’s Adani Group in a year, signing an agreement to co-develop an $11.5bn greenfield aluminium complex in the eastern Indian state of Odisha.

    Under a memorandum of understanding signed with the Odisha state government on 2 July, Adani Enterprises (AEL) and International Resources Holding (IRH), the natural resources investment platform IHC operates through its 2PointZero subsidiary, will form a 50:50 joint venture to build an integrated alumina and aluminium complex. The project comprises a 4-million-tonne-a-year (t/y) alumina refinery, a 2 million t/y aluminium smelter, a 4,000MW captive power plant and a 1 million t/y downstream manufacturing park.

    The deal marks Odisha’s largest foreign direct investment proposal to date and what the partners describe as India’s largest single foreign investment in the metallurgy sector. It is expected to create about 53,500 jobs, split between roughly 35,000 during construction and 18,500 in ongoing mining, refining, smelting and manufacturing operations once the complex is running.

    The tie-up extends a fast-growing relationship between IHC and Adani that began with a renewable energy joint venture between IHC subsidiary ePointZero and Adani Green Energy earlier this year. For IHC, which has built a $233bn portfolio spanning more than 1,300 subsidiaries across technology, infrastructure, financial services and consumer sectors, the Odisha project deepens a strategy of using IRH as a vehicle to secure positions across the minerals value chain underpinning the energy transition, moving beyond passive investment into direct industrial development.

    Odisha holds some of India’s largest bauxite reserves and is already a significant alumina and aluminium producer. State officials cast the project as central to plans to position the region as a global manufacturing hub, tying it to the state’s Samruddha Odisha 2036 development programme and the national Viksit Bharat 2047 agenda.

    The project will proceed in two phases. Following the MoU signing, AEL and IRH said they would move to land acquisition, statutory approvals and infrastructure planning alongside the Odisha government.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17539363/main.png
    Colin Foreman
  • Contractor wins Qiddiya Speed Park package deal

    3 July 2026

     

    Riyadh-based contractor El-Seif Engineering Contracting has won a contract to build the Exclusive Viewing Lounge (EVL) project in Qiddiya Entertainment City.

    Saudi gigaproject developer Qiddiya Investment Company (QIC) awarded the contract.

    The EVL comprises a four-storey structure designed for race-day viewing and guest hospitality. It will include dedicated spectator viewing areas, indoor lounge spaces, guest amenities and back-of-house service areas to support operations.

    Local firm Ammico Contracting carried out the project’s enabling works.

    The EVL is part of the Speed Park project at Qiddiya, which El-Seif Engineering Contracting and UAE-based Alec are jointly executing, as previously reported by MEED. The wider scope includes the construction of buildings around the racetrack.

    The racetrack is being delivered by local United Maintenance & Contracting Company (Unimac). In February 2024, MEED exclusively reported that QIC had awarded an estimated SR1.8bn ($480m) contract for the racetrack and associated infrastructure at Qiddiya’s Speed Park.

    The contract scope includes the track build and all infrastructure works, including electrical networks, storm drainage systems, water and sewer networks, landscaping, and associated underground and above-ground structures, along with related civil works.

    The Speed Park is being built around a Federation Internationale de l’Automobile (FIA) Grade 1 racetrack as part of the resort core in Qiddiya Entertainment City. Once complete, the circuit will be capable of hosting Formula 1 Grand Prix and motorcycling MotoGP races. 

    The Speed Park is one of several major projects within the greater Qiddiya development. Other projects include an e-games arena, the Prince Mohammed Bin Salman Stadium, a horse race venue, a performing arts centre, the Dragon Ball and Six Flags theme parks, and Aquarabia.

    The project is a key part of Riyadh’s strategy to boost leisure tourism in the kingdom. According to GlobalData, leisure tourism in Saudi Arabia has experienced significant growth in recent years.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17538940/main.jpg
    Yasir Iqbal
  • Local contractor wins DIFC tower contract

    3 July 2026

    Dubai-based contractor Al-Basti & Muktha has been awarded a contract to build the DIFC Heights Tower mixed-use development.

    The state-backed Dubai International Financial Centre (DIFC) awarded the contract.

    The project comprises a 43-storey building with 366 residential units, office space, and retail and food-and-beverage outlets. Construction is expected to commence shortly, with completion slated for 2029.

    Enabling works are under way and are being undertaken by Germany’s Bauer.

    Lebanese engineering firm Dar Al-Handasah is the lead and supervision consultant, while UAE-based Time is the project manager. Canadian engineering firm AtkinsRealis is the architect and concept designer, and local firm Omnium is the cost consultant.

    In a statement, DIFC said the project is being developed on the final remaining plot within its original land bank in the Gate District.

    Earlier this year, Dubai announced a AED100bn ($27bn) expansion of DIFC through the creation of the DIFC Zabeel District. A statement from the Government of Dubai Media Office said the new district will add more than 7 million square feet (sq ft), bringing total gross floor area to 17.7 million sq ft.

    The Zabeel District is expected to more than double DIFC’s capacity to more than 42,000 businesses, support a workforce exceeding 125,000, and allocate more than 1 million sq ft for future technologies and artificial intelligence. Planned in six phases, the expansion is scheduled to open to the public in 2030, with the masterplan due for completion in 2040.

    A bridge will link the DIFC Zabeel District to the existing DIFC Gate District.

    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17538278/main.jpg
    Yasir Iqbal
  • Iraq and Turkiye discuss oil pipeline deal

    3 July 2026

    Turkiye’s Energy Minister Alparslan Bayraktar has met with senior Iraqi oil and foreign ministry ‌officials to discuss energy cooperation, including on the Iraq-Turkiye Pipeline (ITP) that runs from Kirkuk to Ceyhan, according to a statement.

    In a post on social media, Bayraktar said that Turkiye aims to work closely with the new Iraqi government on more effective use of existing energy infrastructure.

    The decades-old agreement, which governs crude oil exports through the ⁠pipeline, is due to expire on 27 ​July.

    Baghdad and Ankara are still ​discussing a new draft agreement.

    Turkiye is ​also seeking ​to support ⁠existing infrastructure with new connections, Bayraktar said.

    Baghdad last month asked ​Ankara to extend the pipeline agreement ​for ⁠at least a year to allow time for more talks, but Ankara said ⁠it ​does not want an extension ​under current conditions.

    If the existing pipeline deal expires without Turkiye agreeing to an extension, it would be a major blow to Iraq, which has recently seen a large drop in crude exports due to disruption to shipping through the Strait of Hormuz.

    At the moment, in addition to transporting oil from northern Iraq, the ITP is also transporting crude from southern Iraq, which is brought to the north by truck and then injected into the pipeline network.

    At the end of March, Amer Khalil, the director-general of Iraq’s state-run North Oil Company, said that Iraq was exporting 200,000 barrels a day through the ITP.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17538073/main.jpg
    Wil Crisp