Funding Secured for Abu Dhabi's 1.5-GW Solar Project

• EDF Renewables, KOWEPO, and Masdar shine bright as they secure funding for the ambitious 1.5-GW Al Ajban solar project, destined to power 160,000 homes in Abu Dhabi.

EDF Renewables, Korea Western Power Co. (KOWEPO), and Masdar have successfully secured financial closure for the 1.5-GW Al Ajban solar project in Abu Dhabi's Al Khazna area. This achievement follows the acquisition of debt financing from a consortium of six banks, including BNP Paribas, Credit Agricole CIB, and HSBC Middle East. The project aims to provide electricity to approximately 160,000 homes and features three million bifacial photovoltaic panels mounted on single-axis trackers.

The Al Ajban solar complex, located about 70 kilometers northeast of Abu Dhabi, is expected to begin commercial operations in the third quarter of 2026. The energy generated will be supplied to the utility EWEC under a 30-year power purchase agreement. The ownership of the project is split between the partners, with EDF and KOWEPO each holding 20% and Masdar holding 60%, following their successful bid in April to build and operate the solar facility.

What are the key details and implications of the Al Ajban solar project?

Key Details and Implications of the Al Ajban Solar Project

- Location: The Al Ajban solar project is situated in the Al Khazna area, approximately 70 kilometers northeast of Abu Dhabi, highlighting the UAE's commitment to utilizing its vast desert areas for renewable energy generation.

- Capacity: This project boasts a substantial capacity of 1.5 gigawatts (GW), making it one of the largest solar power initiatives in the region.

- Technology: The solar complex will utilize three million bifacial photovoltaic (PV) panels. Bifacial technology enhances efficiency as these panels can capture sunlight from both sides, benefiting from reflected sunlight from the ground.

- Tracking System: The panels will be mounted on single-axis trackers, allowing them to follow the sun's path throughout the day and further increasing energy output.

- Electricity Supply: The energy produced will supply electricity to approximately 160,000 homes, significantly contributing to the UAE’s goal of increasing energy access and sustainability.

- Power Purchase Agreement: The project has secured a 30-year power purchase agreement (PPA) with the Emirates Water and Electricity Company (EWEC), ensuring long-term revenue stability and support for infrastructure costs.

- Financial Structure: Financial closure was achieved through a consortium of six banks, including major players such as BNP Paribas, Credit Agricole CIB, and HSBC Middle East, signaling strong investor confidence in renewable energy projects in the region.

- Ownership Stake: The ownership distribution entails EDF Renewables and Korea Western Power Co. (KOWEPO) each holding 20% of the project, while Masdar holds a majority stake of 60%, showcasing collaborative international efforts in the renewable sector.

- Environmental Impact: The project is part of the UAE's larger strategic initiative to diversify its energy mix and reduce reliance on fossil fuels, aligning with its sustainability goals and climate commitments.

- Job Creation and Economic Development: The construction and operation of the Al Ajban solar project are expected to create jobs and foster economic growth in the region, both during the building phase and in ongoing maintenance and operation.

- Timeline: Commercial operations are anticipated to commence in the third quarter of 2026, marking a significant milestone in the UAE's renewable energy timeline.

- Future Implications: Successful completion and operation of the Al Ajban solar project could set a precedent for future investments in solar energy across the Middle East and beyond, paving the way for a transition to more sustainable energy systems globally.