The Emirates Water and Electricity Company (EWEC) has awarded the development of the 1.5GW Khazna Solar Photovoltaic (PV) AC independent power project in Abu Dhabi to ENGIE and Masdar.
ENGIE is a provider of low-carbon energy solutions while Masdar is a clean energy provider that would serve as the local shareholder.
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After this award, a power purchase agreement (PPA) was finalised between EWEC and the two companies.
The Khazna Solar PV project is considered a key component of EWEC’s strategic plans to increase solar power capacity in Abu Dhabi and the United Arab Emirates (UAE).
Once completed, the plant will generate enough electricity to power approximately 160,000 homes across the UAE, reducing carbon emissions by over 2.4 million tonnes annually in Abu Dhabi.
The project will feature nearly three million solar panels, and will contribute to EWEC’s goal of increasing Abu Dhabi’s solar power generation capacity to 18GW by 2035.
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By GlobalDataThe move also aligns with the Abu Dhabi Department of Energy’s Clean Energy Strategic Target 2035, which envisages that 60% of the emirate’s power demand be met by renewable and clean energy sources by that year.
EWEC CEO Ahmed Ali Alshamsi said: “Khazna Solar PV, our fourth world-leading utility-scale solar project, is a strategic asset that significantly accelerates our journey towards achieving the UAE’s renewable energy targets.
“By commissioning and deploying transformative and world-leading renewable energy projects, EWEC is taking tangible actions that are pivotal in accelerating the UAE’s energy transition to a carbon-neutral future, supporting the country’s sustainability and socioeconomic objectives.”
Masdar CEO Mohamed Jameel Al Ramahi said: “Masdar is proud to collaborate with EWEC and ENGIE on this gigawatt-scale project, which will support the UAE’s clean energy journey. The Khazna Solar PV project continues our longstanding partnership with EWEC, changing how the UAE produces and consumes energy through pioneering, best-in-class solutions.
“As a global clean energy leader and the UAE’s renewables champion, Masdar is proud to be playing a key role in accelerating the energy system transformation, and this iconic solar project will support that transformation while creating opportunities for sustainable socioeconomic growth.”
The aformentioned PPA is designed as an energy purchase agreement, in which EWEC will only pay for the net electrical energy provided by the facility.
Under the terms of the PPA, ENGIE and Masdar are responsible for designing, financing, constructing, and operating the plant, which will be situated near the Al Khazna area in Abu Dhabi.
The project is anticipated to reach financial closure by the end of the fourth quarter of 2025.
This January, EWEC initiated bidding for the development of the Zarraf Solar PV independent power producer project.
