Al Ajban solar farm advances into active construction with first panel installation

The Emirates Water and Electricity Company has taken a significant step forward with the Al Ajban Solar Photovoltaic Independent Power Project, moving it from the planning phase into actual on-site work. Notably, the first solar panel has now been installed at the Abu Dhabi site. As reported by SolarQuarter, this milestone on February 9, 2026, marks the beginning of the main construction phase for the massive 1.5-gigawatt solar farm. Once finished, it will rank among the largest single-site solar projects worldwide.

This project is being developed by a multinational consortium, led by EDF Renewables, alongside Korea Western Power Company (KOWEPO), and with Masdar serving as the UAE partner. The consortium was officially confirmed following the tender award in April 2024, industry sources say. PowerChina Huadong Engineering Corporation holds the contract for engineering, procurement, and construction, surely reflecting just how complex and large-scale this build really is. Interestingly enough, AjbanPV3 reported that PowerChina secured the EPC contract in July 2024.

Financial closure was achieved by September 2024, according to sources like The Asset and EnterpriseAM. A syndicate of leading banks provided the necessary project financing, including BNP Paribas, Crédit Agricole CIB, Standard Chartered, HSBC Middle East, Sumitomo Mitsui Banking Corporation, and the Export-Import Bank of Korea. Those funding commitments are underpinning the construction and procurement of equipment for what’s expected to be an operational plant by the third quarter of 2026.

Once up and running, the Al Ajban site will host roughly three million photovoltaic modules spread across the desert, about 70 kilometers northeast of Abu Dhabi, industry insiders indicate. The energy output from this plant is forecasted to power about 160,000 homes annually across the UAE. Moreover, EWEC and its partners estimate the facility will prevent the emission of over 2.4 million tonnes of carbon dioxide every year, quite a substantial environmental impact compared to fossil fuel generation.

This project further expands the UAE’s growing renewable energy portfolio and aligns with Abu Dhabi’s push to decarbonize its power grid. As highlighted in statements carried by Zawya and NOW.solar, the plant will enhance grid capacity and help meet the increasing demand driven by economic and population growth. Policymakers see large-scale solar as a key strategy for energy security, while also aiming to keep emissions in check.

The timeline for the project has seen a few public milestones. EWEC first announced that construction was underway at Al Ajban toward the end of 2024, and they updated on their progress in June 2025, based on media reports. The most recent step, installing the first panel in February 2026, marks a shift from preparatory work to active construction. The consortium and contractors are still aiming for commercial operation by the third quarter of 2026.

Beyond just capacity figures and emission reductions, Al Ajban will serve as a test case for logistics and grid integration on a substantial scale. Industry experts point out the common hurdles faced by such large solar farms: procuring vast quantities of modules and inverters, managing construction in the harsh desert environment, and coordinating with grid operators to ensure stable power delivery. The involvement of an experienced EPC contractor and international lenders is intended to mitigate these risks.

Looking at the bigger picture, the project’s setup reflects current trends in large-scale renewable energy financing and delivery. As noted by The Asset, the collaboration between European, Korean, and Emirati firms, along with export credits and international bank backing, underscores how cross-border cooperation is driving the energy transition in the region. Such projects typically depend on strong power purchase agreements (PPAs) to secure financing and generate investor confidence, the Al Ajban PPA was part of the initial contract award process.

Of course, while the environmental benefits are often emphasized, it’s worth examining the broader economic and operational implications. Large solar farms tend to displace thermal plants, leading to reduced marginal fuel costs. But they also bring up questions about system flexibility, such as the need for storage, flexible gas plants, or demand management, to handle their variable output. UAE policymakers and grid operators have been planning some supplementary measures as solar capacity increases.

Construction at Al Ajban will be closely watched by regional stakeholders. If everything goes according to plan and the plant is commissioned by late 2026, it will significantly boost Abu Dhabi’s renewable generation capacity within a relatively short period. For investors and companies involved in the Gulf’s climate tech sector, this project offers fresh insights into the viability and pace of deploying gigawatt-scale solar projects in the region.

As reported by SolarQuarter, NOW.solar, Zawya, The Asset, and EnterpriseAM, the Al Ajban project illustrates how public authorities, development banks, and private developers are aligning their financing and technical skills to speed up the energy transition in the UAE. The installation of the first panel is more than just a symbolic milestone, it’s a clear sign that these arrangements are moving from paperwork and agreements into real ground-breaking construction.

Source: Noah Wire Services