ENGIE And Masdar Secure Financial Close For 1.5 GW Khazna Solar Project In Abu Dhabi

ENGIE and Masdar have achieved financial close on the 1.5 GW Khazna Solar PV project in Abu Dhabi, marking a major step forward for the United Arab Emirates’ renewable energy ambitions. The project is located between Abu Dhabi and Al Ain and is considered one of the region’s largest photovoltaic developments. It is also the biggest solar plant ENGIE has ever undertaken worldwide. A 30-year power purchase agreement was signed with Emirates Water and Electricity Company in 2025, under which ENGIE and Masdar will take responsibility for designing, financing, constructing, and operating the project.

With commercial operation expected to start in 2028, the Khazna Solar PV plant will generate enough clean electricity to power about 160,000 homes across the emirate. This large-scale output will contribute to reducing Abu Dhabi’s carbon emissions by more than 2.4 million metric tons of CO₂ every year. The project supports the UAE’s long-term climate goals, including the national Net Zero by 2050 initiative and Abu Dhabi’s target to meet 60% of electricity demand from renewable sources by 2035. The achievement of financial close highlights strong investor confidence, as the project secured funding from seven major regional and international banks. These include 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.

The Khazna project is expected to play a key role in strengthening the UAE’s clean energy landscape by adding significant solar capacity to the national grid. Once online, it will help diversify energy sources and enhance energy security as electricity demand continues to rise. The size and scale of the project reflect the UAE’s growing commitment to large-scale renewable developments and its intention to remain a leader in the region’s clean energy transition. The project is also notable for being the first major initiative under a broader strategic industrial partnership between ENGIE, LONGi, and PowerChina. LONGi will supply PV panels, while PowerChina will serve as the engineering, procurement, and construction contractor. The cooperation agreement aims to support the development of solar projects over 800 MW in the UAE, Saudi Arabia, and Morocco, enabling the partners to expand their renewable energy presence across the Middle East and North Africa.

Paulo Almirante, Senior Executive Vice President of ENGIE in charge of Renewable and Flexible Power, said the financial close represents an important milestone and reinforces ENGIE’s position as a trusted partner in the region. He added that the company remains committed to supporting energy security while helping advance decarbonisation goals through large, reliable renewable energy projects.