Masdar secures $6.1 billion funding for first gigascale renewable power plant in Abu Dhabi

Masdar has officially reached financial close on a massive $6.1 billion solar and battery storage project in Abu Dhabi, paving the way for what it claims will be the world’s first gigascale, around-the-clock renewable power plant.

The company has secured about $5.1 billion in funding from a syndicate of 13 international and regional lenders, with an extra $1 billion put in as equity. According to Masdar, this funding structure highlights the strong appetite from investors for large-scale clean energy projects in the Gulf region, as well as the emirate’s push to diversify its low-carbon energy sources.

This project is being developed in partnership with Emirates Water and Electricity Company, or EWEC. It aims to both bolster energy security and reduce emissions from electricity generation. Masdar states the plant will combine 5.2GW of solar photovoltaic capacity with a 19GWh battery energy storage system, enough to provide up to 1GW of continuous clean power.

And that’s really the core of what makes this project so appealing. You see, solar power is abundant in the UAE, but it’s naturally intermittent. By coupling it with a huge-scale storage solution, the developers want to provide reliable, dispatchable renewable electricity around the clock, not just when the sun’s shining. For a market still heavily reliant on gas-fired generation, this is definitely a significant step forward.

Masdar describes this project as one of the largest integrated renewable energy developments ever undertaken. Construction kicked off in October 2025, with the company expecting commercial operations to start by 2027.

The financing deal was put together through a broad banking group that includes Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, BNP Paribas, Bank of China, Crédit Agricole Corporate and Investment Bank, Dubai Islamic Bank, First Abu Dhabi Bank, HSBC, KfW IPEX-Bank, Natixis, Sumitomo Mitsui Banking Corporation, Standard Chartered Bank, and Société Générale. This mix of lenders shows how increasingly international Gulf infrastructure projects are becoming, often involving a blend of local banks working alongside big global institutions hungry for major projects.

Mazin Khan, Masdar’s CFO, said the deal really demonstrated the company’s ability to attract global capital for big renewable projects and support economic growth over the long term, all while enhancing energy security. The company also looks at this project as a stepping stone towards its broader goal of reaching 100GW of renewable capacity by the end of the decade.

That ambitious target fits into a wider expansion plan that has already seen Masdar’s portfolio surpass 65GW, covering solar, wind, and battery storage. The Abu Dhabi project is set to be a flagship, both culturally and practically, within that growth strategy.

The scheme also says a lot about the evolving power system in the region. Over the past decade, the UAE has invested heavily in utility-scale solar, but one of the next hurdles is matching power generation more directly with real-time demand. Energy storage is increasingly seen as the missing link here. Long-duration batteries can store excess energy produced during the day and then release it later, helping to smooth out fluctuations and potentially cut down on fossil fuel use during busy hours.

For Abu Dhabi, the project also boosts the emirate’s position as a global hub for energy transition finance and project development. Large-scale renewable initiatives in the Gulf are no longer just about climate; they’re now part of industrial policy, aimed at improving grid resilience, attracting investment, and developing local expertise in advanced energy technologies.

Another key partner in all this is EWEC. As the offtaker and utility operator, EWEC plays a crucial role in integrating new generation capacity into the wider system. The design of the project indicates a more mature approach to deploying renewables, one that values reliability just as much as clean energy. This is especially important in a region where power demand stays high, and expectations for an always-on supply are non-negotiable.

While Masdar hasn’t yet shared a detailed plan for the project’s phased construction, the sizeable battery component suggests it will be a complex build. Projects of this scale depend on not just solid engineering, but also tight supply chain management, grid connection work, and long-term performance guarantees. The company’s choice of suppliers for batteries and modules seems to indicate that procurement has already been set up with leading global tech providers.

Ultimately, reaching financial close isn’t just another routine milestone. It marks a shift, moving from mere ambition to actual delivery, on a project that Masdar and its partners believe could redefine the role of renewables in the Gulf. If everything goes according to plan, the plant will bring the region closer to a power system where solar energy isn’t just plentiful but also dependable day and night.

For Abu Dhabi, this project is a showcase of how big investments, international finance, and cutting-edge technology can be combined into one tangible asset. And for the wider UAE, it’s a testing ground, whether renewables can be scaled beyond just daytime production and actually provide a stable, round-the-clock power supply.