Engie has reached financial closing on its 1.5-gigawatt Khazna solar park in Abu Dhabi, the company’s largest renewable energy project globally, as it intensifies its presence in the fast-growing Middle East market amid a slowdown in U.S. and European renewables.
The Khazna park, expected to commence commercial operations in 2028, will supply electricity to approximately 160,000 homes across the UAE under a 30-year power purchase agreement with Emirates Water and Electricity Company. Financial closing marks the point at which all funding agreements are signed, allowing the project to begin disbursing funds.
Engie currently operates around 25 GW of gas-fired power plants in the Gulf, alongside cooling networks and desalination facilities producing 5 million cubic metres of water daily. The company aims to leverage rising electricity demand, abundant land, and strong solar resources in the region to advance its target of 95 GW of installed renewable capacity by 2030, up from roughly 55 GW today.
“This is a key region for Engie’s ambitions,” said Niko Cornelis, Engie’s country manager for the Gulf Cooperation Council. “Projects of this scale will contribute significantly to our renewables growth through 2035.”
Engie is participating in multiple tenders across the Gulf, including Saudi Arabia, where project sizes range from 0.5 to 2 GW, compared with smaller European solar tenders. While the Gulf market presents challenges such as strong competition and low power prices, Engie has partnered with Chinese firms LONGi and PowerChina to ensure projects remain profitable.
In Abu Dhabi, state-owned Masdar is required to hold a 60% stake in renewable projects. Accordingly, the Khazna park’s equity is split 60/40 between Masdar and Engie, with financing provided by seven international banks, including Abu Dhabi Islamic Bank and Credit Agricole Corporate and Investment Bank.
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