ABU DHABI – The Emirates Water and Electricity Company (EWEC) has officially awarded the contract for the 1.5-gigawatt (GW) Khazna Solar Photovoltaic (PV) Project to a consortium led by France’s Engie and Abu Dhabi-based Masdar. This significant agreement marks a major step in the UAE’s ongoing commitment to expanding its renewable energy capacity and accelerating its clean energy transition.
The decision follows a competitive procurement process, culminating in a long-term Power Purchase Agreement (PPA) between EWEC and the Engie-Masdar consortium. The project, located near Al Khazna in Abu Dhabi, is poised to become one of the world’s largest single-site solar installations once operational.
Boosting Abu Dhabi’s Clean Energy Goals
The Khazna Solar PV project is a cornerstone of EWEC’s ambitious strategy to significantly increase solar power generation and reduce carbon emissions across the emirate. It aligns with the Abu Dhabi Department of Energy’s (DoE) Clean Energy Strategic Target 2035, which aims for 60% of Abu Dhabi’s electricity demand to be met by clean energy sources by 2035.
Environmental Impact and Capacity
Upon completion, the 1.5 GW Khazna Solar PV plant is expected to generate enough electricity to power approximately 160,000 homes across the UAE. This will result in a substantial reduction of over 2.4 million metric tonnes of carbon emissions annually in Abu Dhabi. This is equivalent to removing approximately 470,000 cars from the road. The facility will feature nearly three million solar panels equipped with advanced tracking technology to optimize energy output by following the sun’s path.
Strategic Significance for EWEC
EWEC CEO Ahmed Ali Al Shamsi highlighted the project’s strategic importance, stating that “Khazna Solar PV, our fourth world-leading utility-scale solar project, is a strategic asset that significantly accelerates our journey towards achieving the UAE’s renewable energy targets.” He further emphasized that the partnership leverages world-class expertise to strengthen national energy security and sustainability. The project will play a key role in helping EWEC achieve its target of 18 GW of solar power capacity by 2035.
The Consortium and Its Role
The Engie-Masdar consortium will be responsible for the design, financing, construction, and operation of the Khazna Solar PV plant. Under the terms of the PPA, EWEC will only pay for the net electrical energy supplied by the facility, structured as an energy purchase agreement.
Engie’s Global Footprint
For Engie, this project is set to become its largest photovoltaic asset globally, underscoring its commitment to decarbonization and strategic public-private collaboration in renewable energy deployment. Paulo Almirante, Engie’s Senior Vice President for Renewable and Flexible Power, referred to Khazna Solar PV as a “landmark project” that reflects a shared ambition for decarbonization.
Masdar’s Leadership in Clean Energy
Masdar, a global leader in clean energy and the UAE’s renewables champion, reinforces its long-standing collaboration with EWEC through this project. Mohamed Jameel Al Ramahi, CEO of Masdar, stated that the gigawatt-scale solar development supports the nation’s sustainability goals while creating opportunities for green growth.
Advanced Technology and Future Outlook
The Khazna Solar PV facility will integrate advanced digital technologies, including IoT-enabled sensors, cloud-based analytics, and robotic cleaning systems, to enhance efficiency and reduce operational costs. Financial close for the project is anticipated by the end of the fourth quarter of 2025, with construction expected to commence shortly thereafter. The plant is projected to be completed and connected to the grid between 2027 and 2028.
The Khazna Solar PV project is a critical component of the UAE’s broader clean energy strategy, which includes other major solar initiatives such as the Al Dhafra Solar PV project and the ambitious 5.2 GW solar farm with a 19 GWh Battery Energy Storage System (BESS) planned for Al Azeezah, aiming to provide “round-the-clock” baseload power. These projects collectively drive the UAE towards its Net Zero by 2050 Strategic Initiative.
