Abu Dhabi Future Energy Company (Masdar) and Engie, a global leader in low-carbon energy solutions, last month (January) reached the financial close for the 1.5 GW Khazna Solar Photovoltaic Independent Power Project. 

The financing facilities have been secured through seven top 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).   

Set for commercial operation in 2028, the project will generate enough electricity to power 160,000 homes, while cutting 2.4 million tonnes of carbon emissions per year. 

Masdar CEO Mohamed Jameel Al Ramahi said: “This 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.”

Engie CEO Catherine MacGregor said: “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.” 

“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,” she added.