Emirates Water and Electricity Company (EWEC) has announced the award of its new 1.5 gigawatt (AC) Khazna Solar Photovoltaic Independent Power Project to ENGIE, a global leader in low-carbon energy solutions, and Masdar, a global clean energy leader serving as the local shareholder. The development marks EWEC's fourth world-leading utility-scale solar project and represents a significant milestone in Abu Dhabi's renewable energy expansion.

Following the project award, EWEC signed a Power Purchase Agreement (PPA) with both companies on October 10, 2025. The utility-scale solar power plant will be located near the Al Khazna area of Abu Dhabi and is structured as an energy purchase agreement whereby EWEC will pay only for the net electrical energy supplied by the plant.

Project Specifications and Environmental Impact

Upon completion, the Khazna Solar PV project will generate enough electricity to power approximately 160,000 homes across the UAE. The facility is expected to avoid more than 2.4 million metric tonnes of carbon emissions in Abu Dhabi per year, contributing significantly to the emirate's decarbonization efforts. The solar installation will feature nearly three million solar panels equipped with sun-tracking technology that follows the sun's path throughout the day, maximizing solar energy capture and output.

To optimize operational performance and long-term efficiency, the project will integrate advanced digital solutions, including IoT-enabled sensors, cloud-based monitoring platforms, big data analytics, and robotic cleaning systems to ensure optimal panel performance and reduced maintenance costs.

Strategic Energy Targets and Regional Planning

The Khazna Solar PV project serves as a key pillar in EWEC's strategic plans to increase Abu Dhabi's solar power generation capacity beyond 18GW by 2035. The project aligns with Abu Dhabi's ambitious goal to meet 60 percent of the emirate's total power demand from renewable and clean energy sources by 2035, in line with the Abu Dhabi Department of Energy's Clean Energy Strategic Target 2035 for Electricity Production.

EWEC has established intermediate targets as part of its comprehensive energy transition strategy. By 2030, the company aims to produce over 50 percent of Abu Dhabi's energy needs from renewable and clean energy sources. The organization forecasts that its average carbon dioxide intensity from electricity generation will fall by 54 percent from 330 kilograms per megawatt hour in 2019 to 150 kg/MWh in 2030.

Partnership Structure and Development Timeline

Under the terms of the PPA, ENGIE and Masdar will design, finance, build, and operate the solar plant. EWEC awarded the Khazna Solar PV contract following a comprehensive procurement process. For ENGIE, this project represents their largest photovoltaic asset globally, building on decades of the company's presence in the UAE. The project's financial close is expected by the end of Q4 2025, marking a crucial milestone in the development timeline.

The partnership leverages the combined expertise of both companies, with Masdar bringing local market knowledge as the UAE's renewables champion and ENGIE contributing its global experience in low-carbon energy solutions.

Leadership Perspectives and Industry Impact

Ahmed Ali Alshamsi, Chief Executive Officer of EWEC, emphasized the project's strategic importance in accelerating the UAE's journey toward renewable energy targets. He highlighted that by commissioning and deploying transformative renewable energy projects, EWEC is taking tangible actions pivotal in accelerating the UAE's energy transition to a carbon-neutral future, supporting the country's sustainability and socio-economic objectives.

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, expressed pride in the collaboration, noting that the Khazna Solar PV project continues the company's long-standing partnership with EWEC. He described the project as changing how the UAE produces and consumes energy through pioneering, best-in-class solutions, while creating opportunities for sustainable socioeconomic growth.

Paulo Almirante, ENGIE Senior Vice President in charge of Renewable and Flexible Power, characterized the project as a landmark initiative reflecting shared ambitions for decarbonization and the power of strategic public-private collaboration to accelerate large-scale renewable deployment. He emphasized that the collaboration reinforces ENGIE's commitment to delivering clean, reliable energy solutions that contribute to national energy security and long-term sustainability goals.

The Khazna Solar PV project is part of Abu Dhabi's broader energy diversification strategy, as EWEC executes strategic plans to transform the power sector through utility-scale solar, wind, and nuclear energy, alongside investments in low-carbon-intensive seawater desalination. This comprehensive approach positions renewable energy as crucial for Abu Dhabi's energy transition and sustainability strategy, making the emirate's energy mix more diverse than ever before.

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