The Ayg-1 Solar Project: A Landmark in Renewable Energy Innovation
Poised to transform the UAE’s energy landscape, the Ayg-1 Solar Photovoltaic Project is a monumental 2 GW initiative in Abu Dhabi. Scheduled to begin operations in 2026, the project is backed by a 30-year Power Purchase Agreement (PPA) with a bid tariff of just $1.6215 per kilowatt hour.
Project Scope and Impact
As the largest solar venture in the UAE, the Ayg-1 project is being developed under the independent power producer (IPP) model. It is the seventh solar photovoltaic (PV) project launched by the Abu Dhabi Department of Energy (DoE) and the sixth managed by the Emirates Water and Electricity Company (EWEC).
The project’s record-breaking low bid tariff underscores the UAE’s commitment to sustainable energy solutions. Once operational, Ayg-1 will generate enough electricity to power approximately 160,000 homes and reduce carbon emissions by 1.6 million tonnes annually.
This initiative directly supports the UAE’s Energy Strategy 2050, which aims for clean energy to make up 50% of the national energy mix.
Financial Close Achieved for Ayg-1 Solar Project
The Ayg-1 project reached a significant milestone in the third quarter of 2024, achieving financial close. Its key stakeholders include the Abu Dhabi National Energy Company (TAQA), Mubadala Investment Company, and Abu Dhabi Future Energy Company (Masdar), which collectively hold a 40% stake.
The remaining 60% is owned by a Japanese consortium of Jinko Power and Marubeni Corporation, which was awarded the development contract in April 2024.
Occupying a 20-square-kilometer expanse in the Ajban region of Abu Dhabi, the project’s strategic location is key to strengthening the area’s energy infrastructure.
Ayg-1 Solar Project’s Role in Advancing the UAE’s Energy Strategy
The Ayg-1 project is integral to the UAE’s broader strategy to diversify its energy sources and reduce its reliance on fossil fuels. It represents a critical step toward the nation’s 2050 goal of achieving a 50% clean energy share, helping to meet rising energy demands while upholding environmental sustainability.
As a pivotal milestone in the UAE’s journey toward a sustainable energy future, the Ayg-1 project is both a testament to the nation’s energy security and a model for other regional countries transitioning to renewables. With its 2026 launch on the horizon, the project marks a significant step forward in the UAE’s commitment to clean energy and environmental stewardship.
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