The Khazna Solar PV project, a joint venture between French energy company Engie and Masdar, has reached financial close, marking a significant step in the United Arab Emirates’ (UAE) energy transition. The 1.5GW solar photovoltaic (PV) installation, located between Abu Dhabi and Al Ain, will be the largest of its kind for Engie globally. Equipped with nearly three million solar panels, the project is expected to power approximately 160,000 homes and reduce carbon emissions by more than 2.4 million tonnes annually once fully operational in 2028.
Financing for the project has been secured from a consortium of seven major banks, including Abu Dhabi Islamic Bank and Crédit Agricole Corporate and Investment Bank. Engie’s senior executive vice-president Paulo Almirante emphasized the milestone, stating, “Reaching financial close on Khazna Solar PV is a major milestone and underscores Engie’s role as a trusted partner in the Middle East’s energy transition, delivering large-scale projects that strengthen energy supply security and advance decarbonisation.”
The Khazna Solar PV project was awarded to Engie and Masdar by the Emirates Water and Electricity Company (EWEC) in October 2025 under a 30-year power purchase agreement. This project also signifies the first rollout of a regional cooperation agreement between Engie, PV module supplier LONGi, and engineering, procurement, and construction company PowerChina. The partnership aims to develop large-scale solar projects totaling more than 800MW across Saudi Arabia, the UAE, and Morocco, expanding their presence throughout the Middle East and North Africa.
Engie’s commitment to a carbon-neutral economy by 2045 is evident in its significant investments in renewable energy initiatives. Earlier this month, Engie secured its first hybrid solar and battery storage project in India, combining 200MW of solar PV capacity with a 100MW/600 megawatt-hour battery energy storage system. This project enables up to six hours of renewable energy storage and supply, further demonstrating Engie’s innovative approach to energy solutions.
The Khazna Solar PV project is poised to shape the development of the energy sector in several ways. Firstly, it underscores the growing trend of large-scale solar installations in the Middle East, a region increasingly recognizing the potential of renewable energy to diversify its energy mix and reduce reliance on fossil fuels. Secondly, the project highlights the importance of international partnerships and collaboration in driving the energy transition forward. By bringing together expertise and resources from different regions, such projects can accelerate the deployment of renewable energy technologies and contribute to global decarbonization efforts.
Moreover, the Khazna Solar PV project serves as a testament to the viability of long-term power purchase agreements in attracting investment and ensuring the financial sustainability of renewable energy projects. As more countries and companies set ambitious net-zero targets, such agreements will play a crucial role in mobilizing capital and fostering the growth of the renewable energy sector.
In conclusion, the Khazna Solar PV project represents a significant milestone in the UAE’s energy transition and demonstrates the potential of large-scale solar installations to drive decarbonization and strengthen energy supply security. As the energy sector continues to evolve, such projects will be instrumental in shaping the future of renewable energy and accelerating the global shift towards a more sustainable and low-carbon economy.