Masdar announces $20 billion boost to accelerate global renewable energy expansion

The United Arab Emirates’ leading renewable energy company, Masdar, has recently announced a bold new plan. They aim to deploy around $20 billion in fresh capital and other resources, building on an impressive $30 billion already invested over the last couple of years, according to CEO Mohamed Al Ramahi. Speaking at the Reuters NEXT Gulf summit held in Abu Dhabi, Al Ramahi stressed Masdar’s strong desire to speed up sustainable energy projects and to grow both across the Middle East and on the international stage.

Masdar’s latest Sustainability Report showcases some pretty notable progress in deploying renewable energy, advancing green technologies, and working toward decarbonisation. It helps cement the UAE’s reputation as a hub for forward-thinking investments and innovations in sustainability. Al Ramahi described these new investments as part of a long-term game plan, not only aiming to support global shifts toward clean energy but also to reinforce the UAE’s position as a leader in the field.

What’s more, this planned $20 billion injection is meant to bring together both public and private funds. The idea is to push large-scale renewable projects forward, boost overall capacity, and keep Masdar at the forefront of the industry. Data from the sector shows Masdar’s renewable energy capacity has jumped by about 150% in just two years, reaching 51 gigawatts by the end of 2024. That’s quite a leap, reflecting rapid growth across several continents.

A key part of Masdar’s international plans includes forming partnerships and making acquisitions that help expand its global reach. For instance, Masdar recently completed the purchase of Greece’s Terna Energy in a deal worth €3.2 billion, or roughly €20 per share. This move significantly strengthened its presence in Europe’s renewable energy market and supports its ambitious goal of reaching 100 gigawatts of capacity by 2030.

On top of that, Masdar has teamed up with China’s Silk Road Fund to co-invest up to 20 billion yuan—around $2.76 billion—into renewable projects along the Belt and Road countries, mainly focusing on developing regions. This partnership aligns perfectly with Masdar’s broader target to hit 100 gigawatts of renewable capacity by the end of the decade. These kinds of international collaborations show Masdar’s dedication to global clean energy shifts and to diversifying its markets.

Another major project is the $6.1 billion joint investment with Iberdrola of Spain, building the East Anglia THREE offshore wind farm off the UK’s east coast. Expected to start operation in late 2026, this 1.4-gigawatt facility is a clear example of Masdar’s focus on big infrastructure projects and increasing capacity in mature markets. It has already secured €4.1 billion in funding from 24 international banks, which clearly indicates strong investor confidence.

In the US, Masdar recently bought a 50% stake in Terra-Gen Power Holdings II, one of the biggest independent renewable energy producers in the country. This move not only deepens Masdar’s roots in the American market but also supports its overarching plan to develop 100 gigawatts of renewable energy capacity worldwide by 2030.

Financially speaking, Masdar’s rapid growth is backed by significant investments. In 2024 alone, it put in around $8 billion in equity and obtained over $4.5 billion in project financing spread across nine countries. This influx of capital has allowed for the launch of numerous new projects, reinforcing Masdar’s prominent position in the global clean energy arena.

Industry experts and government officials agree that Masdar’s success not only enhances the UAE’s standing as a leader in sustainability but also drives the worldwide energy transition forward during a crucial period for climate action. Their approach—combining strategic acquisitions, international alliances, and large infrastructure developments—represents a comprehensive effort to expand clean energy worldwide.

Of course, as Masdar speeds up its expansion, it faces the ongoing challenge of balancing rapid capacity growth with sustainable, long-term project viability, and environmental responsibility. Their experience with high-profile projects and global collaborations offers useful lessons, especially when it comes to navigating complex financing, regulatory hurdles, and technological risks.

All in all, the new $20 billion capital deployment plan from Masdar marks a significant step in pushing the boundaries of global clean energy initiatives. It’s a move that echoes both the UAE’s national ambitions and the increasing importance of renewable energy in tackling climate change worldwide. With a history of securing multi-billion-dollar investments and forging key alliances, Masdar seems well-positioned to lead the charge in the ongoing energy transformation.

Source: Noah Wire Services