Masdar and Engie Develop the Abu Dhabi solar plant Project
Powerhouses Masdar and Engie have secured the contract to develop the massive 1.5 GW Al Ajban solar power plant in Abu Dhabi, a landmark project that will significantly advance the UAE’s clean energy ambitions. While the final financial close is expected by the end of 2025, this agreement marks a critical step forward, with the plant slated to be fully operational by the end of 2026.
Al Ajban Solar Plant: An Abu Dhabi solar plant, Details and Timeline
Abu Dhabi Future Energy Company (Masdar)—a globally recognized UAE-owned renewable energy leader—and French energy giant Engie will develop the 1.5 gigawatt alternating current (GWac) Al Ajban solar plant, also known as the Khazna Solar PV project. The Emirates Water and Electricity Company (EWEC) awarded the project, confirming that it will be a cornerstone of the region’s energy strategy.
Located in the Ajban region of Abu Dhabi, the project is a key part of the emirate’s broader clean energy initiatives. The plant will utilize advanced bifacial solar panels, which capture sunlight on both sides to maximize energy generation. The intricate solar panel manufacturing process behind this technology is a key driver of efficiency in modern solar farms. With an ambitious 12-month construction timeline, the facility, once completed, will generate enough clean electricity to power approximately 160,000 homes across the UAE. The initiation of Abu Dhabi ‘s 1 . 5 GW Solar PV on the Horizon signals a major boost to the nation’s renewable capacity.
Financing and Tariff for the Abu Dhabi solar plant
The Al Ajban solar plant will operate under a 30-year power purchase agreement (PPA), ensuring a stable supply of clean energy for decades. It is projected to produce 2.8 TWh of electricity annually, which will displace 1.4 million metric tons of CO2 emissions—an environmental impact equivalent to removing about 300,000 cars from the road each year.
While the total financing amount has not been publicly disclosed, the Masdar and Engie consortium won the bid by submitting a remarkably low tariff of just $0.01417 per kWh in July 2024. This competitive pricing reflects the falling solar panel manufacturing plant cost breakdown and the increasing economic viability of utility-scale solar power.
Abu Dhabi’s Third Utility-Scale Abu Dhabi solar plant Project
The Al Ajban facility is the third major utility-scale photovoltaic (PV) project in Abu Dhabi, cementing the emirate’s position as a solar energy hub. It joins the ranks of the 1.2 GW Noor Abu Dhabi solar park in Sweihan and the 2 GW Al Dhafra solar plant.
The Noor Abu Dhabi plant, which began operations in 2019, was also developed by a consortium involving Masdar. The even larger Al Dhafra solar plant is currently under development. These projects collectively demonstrate a clear and sustained commitment to diversifying the energy mix.
This project also highlights Masdar’s expanding global footprint in the renewable sector. The company’s expertise is not confined to the UAE, with significant investments and partnerships driving green energy transitions from Spain to Indonesia and new developments underway in nations like Turkmenistan and Azerbaijan.
The Al Ajban solar power plant represents a significant step forward in the UAE’s journey toward sustainability and its Net Zero by 2050 strategic initiative. With its substantial capacity and cutting-edge technology, the plant will play a pivotal role in reducing the nation’s carbon footprint and accelerating its energy transition, reflecting a growing momentum for clean energy across the Middle East.
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