EDF Renewables, Korea Western Power (KOWEPO), and Masdar announced the financial closing of the 1.5 GW AC Al Ajban Solar Photovoltaic independent power producer project in Abu Dhabi. The project company, with EDF Renewables and KOWEPO each holding a 20 percent stake and Masdar holding a 60 percent stake, signed a 30-year power purchase agreement with the Emirates Water and Electricity Company (EWEC) to design, finance, build, and operate the plant. EWEC will procure 100 per cent of the solar power produced.
The project has secured financing from six leading banks and financial institutions: BNP Paribas, Credit Agricole CIB, Standard Chartered Bank, HSBC Middle East, Sumitomo Mitsui Banking Corporation (SMBC), and Export-Import Bank of Korea (KEXIM). The project plans to install around 3 million solar panels on single-axis trackers and is expected to supply electricity to about 160,000 households. The solar PV panels are based on bifacial technology.
EWEC aims to meet more than 50 per cent of Abu Dhabi’s power requirements from renewable energy sources. According to estimates, the company is planning to add more than a GW of new solar capacity per year between 2027-2037 as UAE aims to reach net zero target by 2050.
REGlobal’s Views: The UAE, which has largely been dependent on fossil fuels for its energy needs, is now focusing significantly on increasing the share of clean power in its energy mix and reducing its dependency on oil which is prone to volatile prices. In this regard, Abu Dhabi, Dubai and other Emirates, are emerging as investment hotspots for global renewable energy giants, witnessing some of the lowest solar PV tariffs in the world.
