Abu Dhabi has awarded the 1.5-gigawatt (GW) Khazna Solar Photovoltaic (PV) Independent Power Project (IPP) to France’s ENGIE and UAE’s Masdar, marking another major milestone in the emirate’s clean energy transition. The project, located near the Al Khazna area, reinforces Abu Dhabi’s position as a global leader in utility-scale solar power development.
The Emirates Water and Electricity Company (EWEC) confirmed the award in a statement on Friday, noting that a Power Purchase Agreement (PPA) has been signed with the two developers. Under the agreement, EWEC will pay only for the net electrical energy supplied by the plant, ensuring long-term efficiency and value for the emirate’s power grid.
While the official tariff rate and commercial operation date were not disclosed, EWEC said the financial close for the project is expected by the end of Q4 2025.
A New Benchmark for Clean Energy
Once operational, the Khazna Solar PV project will be one of the largest renewable energy facilities in the region. It will feature over three million solar panels, capable of producing enough electricity to power around 160,000 homes across the UAE. The plant is also expected to offset more than 2.4 million metric tonnes of carbon emissions annually in Abu Dhabi — equivalent to removing hundreds of thousands of cars from the road.
Ahmed Ali Alshamsi, Chief Executive Officer of EWEC, said the new project represents a key step in advancing the UAE’s renewable energy ambitions.
“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 said.
The project follows in the footsteps of Abu Dhabi’s existing solar IPPs, including the 2GW Al Dhafra Solar PV, the 1.17GW Noor Abu Dhabi, and the 100MW Shams 1 plant — all of which have set global benchmarks for efficiency and scale.
Competitive Global Interest
The Khazna Solar PV IPP attracted significant international attention during its tendering phase. In October 2024, EWEC confirmed that it had received three competitive proposals — one from ENGIE, another from a consortium comprising EDF Renewables and Korea Western Power Company (KOWEPO), and a third from a consortium led by Jinko Power and JERA.
Earlier, the project had drawn 27 Expressions of Interest (EOIs) from global and regional players, with 19 qualifying for the Request for Proposal (RFP) stage after submitting Statements of Qualification. The strong participation highlights growing investor confidence in Abu Dhabi’s renewable energy sector and its transparent, competitive procurement process.
Strengthening Abu Dhabi’s Clean Energy Ambitions
The Khazna project comes as part of EWEC’s broader strategy to dramatically increase Abu Dhabi’s solar generation capacity. The utility aims to expand solar power production to 18GW by 2035, supporting the emirate’s target of meeting 60% of total power demand through clean and renewable sources by the same year.
These goals align with the Abu Dhabi Department of Energy’s (DoE) Clean Energy Strategic Target 2035, which seeks to balance energy diversification, sustainability, and economic competitiveness.
With large-scale projects like Khazna, Al Dhafra, and Noor Abu Dhabi already in motion, EWEC is positioning the UAE as a pioneer in utility-scale renewable energy. The integration of solar power on this scale also complements the country’s efforts to achieve net-zero emissions by 2050, a national target under the UAE’s broader climate and sustainability agenda.
Masdar and ENGIE: A Proven Partnership
The partnership between ENGIE and Masdar brings together two leading players in global renewable energy. Masdar, Abu Dhabi’s flagship clean energy company, has developed and operated some of the region’s most advanced solar and wind projects. ENGIE, meanwhile, has deep expertise in energy transition technologies and large-scale power generation across Europe, the Middle East, and Asia.
Together, the two firms are expected to leverage their technical and financial capabilities to ensure the Khazna project meets international standards for efficiency, sustainability, and long-term reliability.
A Regional Shift Toward Solar Dominance
Abu Dhabi’s latest award continues the momentum of solar expansion across the Gulf region. Earlier this year, EDF Power Solutions and KOWEPO signed a joint development agreement for the 1.5GW Al Zarraf PV Solar IPP, also in Abu Dhabi. Similar large-scale projects are being rolled out across the GCC, driven by the twin goals of energy diversification and decarbonization.
By scaling up solar capacity, Abu Dhabi not only enhances its domestic energy security but also positions itself as a regional exporter of clean power and technology expertise.
Looking Ahead
With the Khazna Solar PV IPP moving toward financial close, construction is expected to begin soon after, paving the way for yet another milestone in Abu Dhabi’s renewable energy journey.
Once completed, the project will stand as a symbol of the UAE’s commitment to innovation-driven sustainability — and a clear indicator that the nation is firmly on track to achieve its long-term clean energy goals.
