Masdar and Engie, both from the UAE, reach financial closure on the 1.5 GW Khazna Solar Project

Masdar, a UAE-based company, and Engie, a French company have completed a 1.5-gigawatt project in Abu Dhabi. They secured financing from seven banks including the?Abu Dhabi Islamic Bank? and?Credit Agricole Corporate? and?Investment Bank?.

According to the companies, this group includes KfW IPEX as well as BNP Paribas and HSBC.

Abu Dhabi's Emirates Water and Electricity Company awarded Engie and Masdar this project in October. The companies signed a 30-year Power Purchase Agreement.

The partners will finance, design, build, and operate the plant in the Al Khazna region of Abu Dhabi. They will install nearly three million 'panels. Khazna, which is scheduled to be online by 2028 and power 160,000 homes in the UAE, will provide electricity for about 160,000 homes once it's operational. Engie said the project would be its largest photovoltaic assets globally.

Niko Cornelis, Engie's country?manager in the Gulf?Cooperation Council told reporters during a Monday media call that the company handled all the bank negotiations, but refused to reveal how much of the cost would be covered by debt. According to 'local ownership rules,' the equity is divided 60/40 by Masdar and Engie.

Cornelis stated that the GCC is a strategic area for Engie and that the company actively participates in?tenders throughout the region. This includes opportunities in Saudi Arabia as well as a upcoming 'Abu Dhabi solar bid of similar size to be launched shortly.

Khazna forms part of a larger plan to expand Abu Dhabi's capacity for renewable energy sources by 2035. The goal is to meet 60% of the power demand with clean and renewable sources. The?UAE pledged to achieve net-zero emission by 2050. Masdar, owned jointly by Mubadala ADNOC, and TAQA has reached 65 GW in clean energy capacity. It is aiming for 100 GW within 2030.

(source: Reuters)