Korea Eximbank Backs UAE Solar Project With $150 Million Financing

The Export-Import Bank of Korea announced on Monday its commitment to provide $150 million in project financing for a major solar power project in the United Arab Emirates (UAE), marking South Korea’s first venture of this scale in the region.

This financial support follows the successful bid jointly won by Korea Western Power Co. and EDF-Renewables, a subsidiary of Electricite de France, which will oversee the entire project process.

Korea Eximbank has been involved since the early stages of bidding, expressing its dedication through a letter of interest. The financing represents up to 16.67 percent of the total project cost estimated at $900 million.

Through project financing, Eximbank will secure loan repayment from future revenues generated by the project.

Located in the Ajban desert, 70 kilometers east of Abu Dhabi, the project is the largest solar power initiative undertaken by Korean firms in terms of both capacity and investment. Spanning 20 square kilometers, the facility will house approximately 2.93 million solar modules, generating a total capacity of 1,500 megawatts.

Scheduled for completion in 2026, the plant will rank as the world’s seventh-largest solar power facility. It is projected to produce about 4,500 gigawatt-hours annually, surpassing the electricity consumption of Incheon on a household scale. The UAE’s Emirates Water and Electricity Company has committed to purchasing all electricity generated by the plant over a 30-year period.

A representative from Korea Eximbank highlighted that nations in the Middle East, such as the UAE and Saudi Arabia, are actively advancing extensive solar power initiatives to drive towards carbon neutrality and address climate change concerns.

“We remain committed to supporting Korean companies in securing future projects in this competitive Middle Eastern market, thereby contributing to the global shift towards renewable energy,” the official emphasized.