Updated October 10, 2025 – The Emirates Water and Electricity Company (EWEC) has selected Masdar and ENGIE as the partners for the Khazna Solar Photovoltaic (PV) project, a 1.5 GW solar power plant to be developed in Abu Dhabi. The large-scale facility is part of the UAE’s broader clean-energy strategy to diversify power generation and cut carbon emissions.
Khazna Solar Project’s PPA with EWEC
The Khazna solar project will be developed under a long-term Power Purchase Agreement (PPA) with EWEC. This will cover the design, financing, construction, operation, and maintenance of the plant. Once completed, it is expected to generate enough electricity to power about 160,000 homes annually. This will offset more than 2.4 million tons of CO2 emissions per year. Additionally, the plant will feature nearly three million solar panels mounted on advanced single-axis tracking systems to maximize generation efficiency throughout the day.
The project also reinforces EWEC’s plan to increase Abu Dhabi’s installed solar capacity to 18 GW by 2035, which would enable renewable and clean energy sources to meet up to 60 per cent of total electricity demand. It also contributes to the UAE’s national target of achieving Net Zero by 2050.
Khazna Solar Power Project in Abu Dhabi: Factsheet
Location: Abu Dhabi, United Arab Emirates
Capacity: 1.5 GW
Offtaker: Emirates Water and Electricity Company (EWEC)
Technology: Solar photovoltaic with single-axis tracking
Estimated Supply: Power for 160,000 homes annually
CO2 Emissions Avoided: 2.4 million tons per year
Status: Partnership announced. Awaiting financial close and construction start
Khazna Solar PV Plant in Abu Dhabi: Timeline
October 2025: EWEC announces Masdar and ENGIE as preferred partners for the 1.5 GW Khazna Solar PV project.
Late 2025: Financial close expected, with construction to begin soon after.
2027-2028: Expected completion and grid connection, subject to permitting and construction timelines.
1.5GW Khazna Solar Power Project Go Ahead Issued by Abu Dhabi
Reported October 20, 2023 – The I.5 GW Khazna solar power project go ahead has been issued by Abu Dhabi. The Emirates Water and Electricity Company (EWEC) invited bids for the project earlier last month in preparation to start the project. The scope of the work involves the development, construction, maintenance, financing, and even the operation and ownership of the project. Associated infrastructure based from the project will also be part of the project’s scope and the contracted company will be liable for them as well. The project is in line with Abu Dhabi’s program for independent energy projects. Here, developers enter into a long-term power purchase agreement with EWEC as the sole power purchaser.
The Khazna solar power project development aligns with the company’s plan to construct additional renewable energy projects. The aim of this is to ensure that the projects propel them in meeting their target of increasing solar power generation capacity to 7.3 GW by 2030.
Othman Al Ali, CEO of EWEC, emphasized that solar energy is an integral part of the company’s strategy to lean its portfolio toward a low-carbon system. This, in turn, will facilitate the decarbonization of electricity production, which is also on the agenda. The CEO also pointed out that EWEC is strategically investing in developing world leading renewable projects in a bid to meet their targets. One of these targets is ensuring 60 per cent of Abu Dhabi’s total power generation is from renewable energy sources by 2035.
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The Khazna Solar Power Project: To Generate Electricity for Approx. 160,000 Homes
The Khazna Solar Power project will generate electricity for around 160,000 households once it is fully operational in the United Arab Emirates.
It is also expected to reduce carbon emissions by more than 2.4 million metric tons annually. This is an equivalent of getting approximately 470,000 cars off the road. EWEC also plans to commission at least two additional 1.5 GW solar power projects. This is in line with adding an average of 1 GW of solar capacity per year in the next decade. This is evident as seen with the June 2025 EDF-KOWEPO deal for EWEC’s fifth utility-scale project, the 1.5 GW Al Zarraf Solar PV Project in Abu Dhabi’s Al Dhafra region.
Impact on the Region and Solar Energy Market
Regional Impact
Masdar, already with a global clean-energy portfolio exceeding 51 GW, will co-lead the development with ENGIE. Khazna is EWEC’s fourth utility-scale solar award and represents a flagship project in Abu Dhabi’s multi-gigawatt trajectory toward greater renewable electricity production.
The 1.5 GW Khazna Solar PV Plant in Abu Dhabi also aligns with UAE’s Clean Energy Strategic Target 2035. This also reinforces EWEC’s mandate of diversifying energy sources and reduction of carbon emission intensity. Current target aims to see a drop in emissions from 330 kg CO2/MWh in 2019 to about 150 kg CO2/MWh by 2030.
Market Impact
The partnership between government through EWEC, domestic clean-energy developer, Masdar, and international expertise through ENGIE shows how Abu Dhabi continues to attract global players for renewables development. This also reinforces the emirate’s commitment to public-private partnership.
The use of tracking panels and robotic systems also shows that future utility-scale PV projects will not only depend on scale but also on output optimization, reduction of losses, and cutting down of overall long term costs.
The contract also sends a strong message to investors in the Middle East and globally that utility-scale solar is still one to invest in, and is still competitive. The massive 1.5 GW Khazna Solar PV Plant in Abu Dhabi may also set a benchmark for solar PPA pricing and implementation standards across the region.
