Masdar Amplifies Global Clean Energy Initiatives With AED30 Billion Investment

(MENAFN- The Arabian Post)

Abu Dhabi Future Energy Company, widely known as Masdar, has significantly bolstered its position in the global renewable energy sector by deploying approximately AED30 billion in equity investments and securing over AED16.5 billion in project financing across nine countries. These strategic moves underscore Masdar's commitment to expanding its renewable energy portfolio and driving the global transition towards sustainable energy sources.

Established in 2006, Masdar has been instrumental in advancing the United Arab Emirates' vision of becoming a global leader in sustainability and climate action. The company has developed and partnered in projects spanning over 40 countries, with an ambitious mandate to increase its renewable energy capacity to 100 gigawatts by 2030.

In 2024, Masdar's investments led to the launch of new projects in nine countries, reflecting its dedication to global clean energy expansion. Notably, the company announced the financial close of six significant projects, including the 1.1GW Al Henakiyah Solar Power Plant and the multi-utility AMAALA project.

A landmark initiative in Masdar's portfolio is the development of a facility designed to produce 1GW of uninterrupted clean power. This project, announced during Abu Dhabi Sustainability Week, represents a significant shift towards making renewable energy a reliable baseload power source. The facility, with an estimated cost of $6 billion, is slated to become operational by 2027 and will cover 90 square kilometers in Abu Dhabi's desert. Funding for this project will be sourced through a combination of equity and project finance debt.

Masdar's strategic expansion is further evidenced by its ongoing negotiations to acquire a 49.9% stake in a 450-megawatt solar portfolio controlled by Spanish power utility Endesa. This $200 million deal aligns with Masdar's goal to reach 100GW of global renewable energy capacity by 2030 and reflects its expansion strategy in Europe, particularly in Spain. This approach is consistent with Enel's strategy to reduce debt by selling minority stakes in select projects while retaining asset control.

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In addition to its European ventures, Masdar has entered into a $15 billion renewable energy agreement with the Philippines. This collaboration aims to develop solar, wind, and battery energy storage systems, providing up to 1GW of clean power by 2030. This initiative underscores Masdar's commitment to fostering sustainable energy solutions in Southeast Asia.

Masdar's capacity has seen a remarkable increase, with its overall renewable energy capacity rising by 150% to 51GW by the end of 2024, up from 20GW in 2022. This significant growth establishes Masdar as a global clean energy leader and positions the company well on track to achieve its ambitious target of 100GW of renewable energy capacity by 2030.

The company's projects are diverse and geographically widespread. For instance, Masdar has been involved in the development of the Baynouna Solar Energy Project in Jordan, the largest single solar energy project currently under development in the country, with a capacity of 200MW. Additionally, Masdar has invested in the Dudgeon Offshore Wind Farm in the United Kingdom, one of its significant investments in the UK's renewable energy sector.

Masdar's commitment to sustainability extends beyond project development. The company has established a Green Finance Framework that aligns its investments with the United Nations Sustainable Development Goals. This framework ensures transparency and integrity, supporting global net-zero goals and reinforcing Masdar's dedication to responsible investment practices.

As part of its ongoing efforts to expand its renewable energy footprint, Masdar is exploring opportunities in Portugal. The company is considering acquiring a stake in TotalEnergies' renewable energy assets in Portugal, potentially proceeding through Saeta Yield, a green energy firm it purchased from Brookfield in the previous year. This prospective acquisition aligns with Masdar's strategic expansion in the Iberia region and highlights its commitment to increasing its presence in Europe.

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Masdar's strategic investments and partnerships have not only expanded its global presence but have also contributed significantly to the advancement of renewable energy infrastructure worldwide. The company's initiatives are in line with the broader trend of increasing renewable energy adoption in the Middle East. The region is rapidly becoming a significant player in the renewable energy market, second only to China in growth rate. For instance, the UAE announced plans to build a $6 billion, 5GW solar plant with 19GWh of battery storage, which would be the largest project of its kind globally. This project, set to commence in two years, aims to deliver a constant power output of 1GW.

via Greenlogue

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