The UAE Water and Electricity Company (EWEC) recently announced that it has officially awarded the 1.5GW Khazna solar photovoltaic independent power project to the French ENGIE Group and the local company Masdar. The project partners have now signed a Power Purchase Agreement (PPA), marking the substantial commencement of this key project for the UAE’s energy transition.
It is reported that the Khazna solar power plant will be located near the Khazna area in Abu Dhabi. Upon operation, it will be equipped with nearly 3 million solar panels featuring tracking technology. Through technical optimization, the plant can adjust the panel angles in real-time to maximize solar energy capture and enhance energy conversion efficiency. Calculations show that the plant’s annual electricity generation can meet the power demands of approximately 160,000 households in Abu Dhabi, while also reducing carbon emissions by over 2.4 million tonnes annually. This will supplement regional energy supply and support local low-carbon development.
Regarding the cooperation model, the project follows the PPA terms: EWEC, as the power off-taker, only pays for the net electricity supplied by the plant. ENGIE and Masdar will jointly assume full lifecycle responsibilities for the project, covering design, financing, construction, and operation. To enhance project benefits, the partners will also introduce digital technologies such as IoT sensors, cloud monitoring platforms, big data analytics, and robotic cleaning systems to further optimize panel performance, reduce operational and maintenance costs, and ensure the long-term stable operation of the plant.
The advancement of this project aligns closely with the energy strategies of both the UAE and Abu Dhabi. According to EWEC disclosures, its long-term goal is to increase Abu Dhabi’s solar power capacity to 18GW by 2035, helping the emirate achieve its target of sourcing 60% of its electricity demand from renewable and clean energy. This plan is fully consistent with the Abu Dhabi Department of Energy’s ‘Clean Energy Strategic Target 2035’. From a broader perspective, this project is a vital part of Abu Dhabi’s diversified energy layout. The region has already established a comprehensive energy system encompassing solar, wind, nuclear power, and low-carbon desalination, and plans to source over 50% of its electricity demand from clean energy by 2030, reducing the carbon intensity from 330 kg/MWh in 2019 to 150 kg/MWh.
