Abu Dhabi Future Energy Company (Masdar) has announced that its consortium - comprising key members French utility major EDF Renewables and Korea Western Power (Kowepo) - has achieved financial closing of the 1.5-gigawatt (AC) Al Ajban Solar PV Independent Power Producer (IPP) project in the UAE capital. 

 

Following a successful bid submission, the project company - owned by EDF Renewables and Kowepo (with 20% stake each) as lead members, and Masdar as local shareholder (60% stake) - signed a 30-year power purchase agreement (PPA) with the Emirates Water and Electricity Company (EWEC).

 

As per the deal, the Masdar-led consortium will be responsible for the design, financing, construction and operation of the plant.

 

The project, located 70km north-east of Abu Dhabi city, will have a capacity of 1.5GW. Once fully commissioned in Q3 2026, the Al Ajban facility will be one of the world’s largest single-site solar power plants, deploying 3 million solar panels mounted on single-axis trackers to generate enough electricity for 160,000 homes across the UAE. 

 

Upon full commercial operation, the plant is expected to reduce Abu Dhabi’s CO2 emissions by more than 2.4 million tons per year.

 

Financing for the project has been secured from six top-tier banks and financial institutions - BNP Paribas, Credit Agricole CIB, Standard Chartered Bank, HSBC Middle East, Sumitomo Mitsui Banking Corporation and Export-Import Bank of Korea (Kexim), said Masdar in a statement.

 

On the strategic agreement, Ewec CEO Othman Al Ali said: "Al Ajban Solar PV is a further example of Ewec’s industry leading strategic advancement of world-leading solar power projects, and stewardship of the UAE’s energy transition."

 

"Solar power is one of the most cost-effective and low-carbon-intensive solutions for electricity generation, and we are rapidly commissioning and deploying new utility-scale solar power projects, to enable the generation of 7.5GW of solar PV by 2030, in addition to projects in support of UAE’s next-generation energy infrastructure," he stated. 

 

The financial close of Al Ajban Solar PV is a further milestone in this key project that will enable our decarbonisation of the UAE’s energy sector, he added.

 

Masdar CEO Mohamed Jameel Al Ramahi said: "Our valued partnership with EDF, Ewec and Kowepo on the Al Ajban Solar PV plant highlights the importance of harnessing our mutual experience and expertise to deliver utility-scale clean energy projects."

 

"Partnerships are vital to the energy transition and to achieving the objective of tripling global renewable capacity by 2030 set out in the UAE Consensus. With the development of Al Ajban, Abu Dhabi is home to three of the largest single-site solar plants in the world, making it a global leader in the adoption of utility-scale solar power," he added.

 

Lauding the consortium partners for the support, Beatrice Buffon, EDF Group Vice-President, International Division and Chairwoman and CEO of EDF Renewables, said: "This large-scale renewable energy project is fully in line with EDF’s strategy to provide innovative, carbon-free solutions in the UAE, such as pumped hydro storage, large-scale and distributed solar, BESS and transmission infrastructure."

 

"Together with Kowepo and Masdar, we are advancing the UAE’s energy transition and are creating long lasting value with competitive, low-carbon energy projects that meet the highest Health and Safety standards," he added.

 

Kowepo CEO Hyungduck Park said: "We are honoured to be a key partner in the Al Ajban Solar PV project, which marks a significant milestone not only for us but also for the UAE's ambitious energy transition goals. Successfully achieving financial close on this project reflects our commitment to advancing renewable energy solutions on a global scale."

 

"Through our collaboration with EDF Renewables and Masdar, we are dedicated to delivering sustainable energy that will contribute to reducing carbon emissions and support the UAE's vision for a greener future. This project stands as a testament to our collective efforts in pioneering innovative and environmentally responsible energy initiatives," he added.-TradeArabia News Service