UAE’s $6 billion renewable energy project set to revolutionize global power supply

On January 14, the UAE unveiled what it calls the “world’s first” facility capable of delivering renewable energy around the clock at scale.

Masdar, an Abu Dhabi-based clean energy company, will combine 5 gigawatts of solar power with 19 gigawatt-hours of battery storage to produce 1 gigawatt of uninterrupted clean power.

Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology, and chairman of Masdar made the announcement at Abu Dhabi Sustainability Week, Caliber.Az reports referencing foreign media.

“This project addresses the long-standing challenge of intermittency in renewable energy,” Dr. Al Jaber explained. “For decades, the question has been: how do we power a world that never sleeps using energy sources that do? This project will transform renewable energy into baseload energy for the first time, marking a crucial step that could lead to even greater advancements.”

The initiative, located in Abu Dhabi over 90 square kilometres, will require a $6 billion investment and is set to begin operations by 2027, according to Abdulaziz Alobaidli, Masdar's chief operating officer. He also mentioned that the funding for the project would come from a mix of equity and project finance debt, as is common for large-scale ventures in Abu Dhabi.

“This is our most ambitious project to date,” Alobaidli added.

The launch comes at a time when the international community faces mounting pressure to accelerate efforts to meet the global targets set in the Paris Agreement. The goal of tripling renewable energy capacity and doubling energy efficiency by 2030 is critical to maintaining the 1.5°C global warming threshold. Despite record spending on renewables, national plans are on track to deliver only half of the required growth, according to a recent report from the Abu Dhabi-based agency.

To achieve these goals, global renewable energy capacity needs to increase from 3.9 terawatts to 11.2 terawatts by 2030. However, the report found that current national plans will leave a gap of 3.8 terawatts, missing the target by 34%.

The UAE, which plans to generate 19.8 gigawatts of clean energy by 2030, has made significant progress, having already doubled its renewable energy capacity in the past two years. Dr. Amna Al Dahak, Minister of Climate Change and Environment, highlighted that the country is on track to meet its ambitious renewable energy goals.

As part of the UAE Energy Strategy 2050, the country will invest between Dh150 billion ($40.84 billion) and Dh200 billion by 2030 to meet growing energy demand while supporting economic growth. Projects in the pipeline include the 1.8-gigawatt sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park, Dubai’s waste-to-energy project, and two major photovoltaic plants in Abu Dhabi, Al Ajban and Al Khazna, each with 1.5 gigawatts of capacity.

Masdar, meanwhile, is aiming for 100 gigawatts of renewable energy capacity by 2030, up from the current 20 gigawatts.

By Tamilla Hasanova