Abu Dhabi Future Energy Company (Masdar), a global clean energy leader, and Engie, a global leader in low-carbon energy solutions, today (January 19) announced that they have reached the financial close for the 1.5 gigawatt (AC) Khazna Solar Photovoltaic Independent Power Project.
The financing facilities have been secured through seven leading regional and international banks - Abu Dhabi Islamic Bank, Crédit Agricole Corporate and Investment Bank, KfW IPEX, BNP Paribas, Hong Kong and Shanghai Banking Corporation, Sumitomo Mitsui Trust Bank and Emirates Development Bank.
Khazna Solar PV was awarded to the Masdar-Engie JV in October last year. Following the award, the project company owned by the duo signed a 30-year power purchase agreement with Emirates Water and Electricity Company (Ewec), a leading company in the integrated planning, purchasing, supply, and system despatch services of water and electricity across the UAE.
The project, scheduled to start commercial operation in 2028, will generate enough electricity to power approximately 160,000 homes, while avoiding around 2.4 million tonnes of carbon emissions per year, supporting the UAE’s energy transformation and contributing to national decarbonization goals.
Masdar CEO Mohamed Jameel Al Ramahi said: "Today’s announcement marks a major milestone for the development of this project, which will play a significant role in the UAE’s energy transformation. The Khazna Solar PV project adds to Masdar’s fast-growing portfolio in the UAE and strengthens our partnerships with Ewec and Engie."
"We look forward to working closely with them to bring this project to full energization and providing reliable, clean electricity to power the UAE’s sustainable socioeconomic progress, he stated.
Engie CEO Catherine MacGregor said the company continues to execute its commitment to delivering sustainable infrastructure for clean, reliable energy solutions at scale.
"This financial close represents a landmark in the development of a mission-critical asset to the UAE’s path towards net zero by 2050 and further strengthens ENGIE’s decades long partnership supporting the country’s renewable energy rollout," she added.
In collaboration with Ewec and Masdar, the Khazna Solar PV will operate as a flagship project to both the UAE’s national energy security and its long-term decarbonisation ambitions, and we are proud to reach this milestone as we look ahead to full commercial operations in the coming years.”
Ahmed Ali Alshamsi, Chief Executive Officer of EWEC, said: "The financial close of Khazna Solar PV is a decisive step in EWEC’s strategic plan to scale world-class renewable capacity and transform the UAE’s energy landscape."
"As our fourth world-leading utility-scale solar project, Khazna Solar PV is a key asset that accelerates our progress towards meeting 60 per cent of total power demand from renewable and clean energy sources by 2035," he added.
By pioneering large-scale renewable projects, Ewec is taking tangible actions to ensure a secure and sustainable energy supply for the nation while supporting the UAE Net Zero by 2050 Strategic Initiative.
"We look forward to working with Masdar and Engie through delivery and operations to bring the project online and accelerate a more sustainable water and energy future for the nation," he added.-TradeArabia News Service
