Masdar has reached financial close on a $6.1 billion renewable energy project in Abu Dhabi designed to deliver one gigawatt of continuous clean electricity around the clock. The project combines a 5.2-gigawatt solar photovoltaic plant with a 19-gigawatt-hour battery energy storage system, creating what Masdar describes as the world’s first gigascale round-the-clock renewable energy development.
A consortium of 13 international and regional banks provided a $5.1 billion financing package for the project. Masdar will contribute the remaining $1 billion through an equity investment.
The financing consortium 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 Societe Generale.
Masdar is developing the project with Emirates Water and Electricity Company, which is responsible for coordinating electricity and water supply across Abu Dhabi.
The development is intended to address one of the central challenges facing renewable energy systems: solar and wind power generation can fluctuate based on weather conditions and time of day.
The project’s large battery system will store electricity generated by the solar plant and release it when solar production is insufficient, allowing the facility to supply a steady level of power throughout the day and night.
Masdar expects the integrated system to deliver one gigawatt of continuous clean electricity.
This approach is intended to make renewable energy function more like traditional baseload power, which is available consistently rather than only when environmental conditions are favorable.
The 19-gigawatt-hour battery component will be one of the largest energy storage installations developed alongside a renewable energy project.
Battery storage can absorb excess solar output during periods of strong production and dispatch that electricity when demand rises or sunlight declines.
The combination may also improve grid stability by smoothing changes in electricity supply and reducing the need for fossil-fuel generation to respond to short-term fluctuations.
Masdar said the financial close demonstrates that very large renewable projects capable of delivering continuous power are becoming commercially financeable.
The participation of 13 banks provides the project with a broad funding base and reflects lender confidence in its commercial structure and construction plan.
Large energy infrastructure projects typically require substantial debt financing because of their high upfront capital costs and long operating lives.
Reaching financial close indicates that the financing agreements and related conditions have been completed, allowing the project to advance with committed funding.
Masdar began construction on the project in October 2025 and expects it to become operational in 2027.
Once completed, the development will support the United Arab Emirates’ energy security and economic diversification objectives.
The project also arrives as global electricity demand increases because of the growth of artificial intelligence, data centers, advanced manufacturing and other power-intensive industries.
Data centers require continuous electricity to operate computing systems, cooling equipment and related infrastructure. This makes reliability particularly important when companies evaluate potential energy sources.
A renewable project that can provide electricity on a continuous basis could support these customers while reducing their dependence on conventional power generation.
Masdar views the development as a model for future utility-scale projects that combine renewable generation with enough battery capacity to provide dependable output.
If replicated, similar systems could allow regions with strong solar resources to increase renewable electricity use without sacrificing reliability.
The project also illustrates how the economics of renewable energy are expanding beyond the cost of generating electricity during daylight hours.
Developers increasingly need to consider the cost of storing, managing and dispatching electricity so renewable projects can meet demand at the times customers require it.
The Abu Dhabi development is expected to establish a new benchmark for financing these integrated systems at a very large scale.
Masdar has a global renewable energy portfolio totaling more than 65 gigawatts across established and high-growth markets.
Its projects span solar power, onshore and offshore wind, battery energy storage and hybrid energy systems.
The company is targeting 100 gigawatts of renewable energy capacity by 2030.
Masdar is jointly owned by TAQA, ADNOC and Mubadala and has operated in the renewable energy sector since 2006.
The $6.1 billion project strengthens its position in large-scale energy storage and hybrid renewable infrastructure while supporting its broader international growth strategy.
The financing also demonstrates Masdar’s ability to attract institutional capital for increasingly complex projects involving multiple technologies and operating requirements.
By pairing gigascale solar generation with extensive battery storage, the project aims to deliver reliable and affordable clean electricity while reducing the intermittency associated with renewable power.
KEY QUOTE:
“We are pleased to have secured funding from such a broad and highly respected group of local and international banks in support of this pioneering project. This significant financing commitment demonstrates the confidence of the international banking community not only in a landmark project but also in Masdar’s financial strength, disciplined execution and long-term growth strategy. This milestone further demonstrates our ability to mobilize global capital at scale while delivering innovative renewable infrastructure that supports long-term economic growth and energy security. We now look forward to advancing the project to deliver reliable, affordable, clean energy around the clock.”
Mazin Khan, Chief Financial Officer of Masdar
