Masdar, the United Arab Emirates’ flagship renewable energy company, is aiming big with a target of 100GW of renewable energy capacity by 2030, and 400GW by 2050. The company has been involved in multiple groundbreaking renewable energy initiatives in over 40 countries across six continents since its founding in 2006. Masdar’s Chief Operating Officer, Abdulaziz Alobaidli, believes that achieving these targets will require a mix of backing transformative projects and green acquisitions.
In 2022, Masdar saw a new phase of growth when key holding shares were purchased by TAQA and Abu Dhabi National Oil Company. This move “supercharged” Masdar as the UAE’s renewable energy champion, leading to the launch of mega projects and signature investments. One of the recent achievements includes the launch of Al Dhafra Solar Farm, a 2GW facility in Abu Dhabi, in partnership with TAQA, France’s EDF, and China’s Jinko Power. Masdar aims to make the UAE a hub for wind power with a project spanning four sites with a total capacity of 103.5MW.
As part of its global expansion, Masdar took a 50% stake in Terra-Gen Power, a leading renewable energy producer in the U.S. Alobaidli believes that such transformative asset acquisitions globally help bring green wattage, capabilities, and future developments to Masdar’s portfolio. The company is looking to make further transactions this year, especially in Europe and Asia. Masdar is investing in local capabilities in every international market it enters, with teams on the ground to handle challenges related to project permits, financing, and public-private partnerships.
Masdar’s approach to renewable energy investment is profit-driven while also focusing on community and carbon transition aspects. Alobaidli emphasizes the need for a just energy transition to achieve global electrification powered by renewable energy. Masdar aims to engage with the global south and signed an agreement with Africa 50 to unlock Africa’s clean energy potential. Alobaidli acknowledges that the road to a greener future won’t be easy, especially in capital-intensive industries, but believes that confidence and belief in exploring new horizons and solutions can inspire governments and stakeholders.
The company’s scale and ambition have enabled the UAE to offer competitive solar power tariffs, such as the 1.35 cents/kWh tariff set at the Al Dhafra Solar Farm. Masdar’s return on investment expectations are technology-driven, with projects ranging from single to double-digit returns based on risk levels. Alobaidli believes that renewables can help developing countries leapfrog coal-fired power generation and provide energy security. While the first project in an emerging market may be expensive, it requires patience and confidence to inspire belief in the value of exploring new solutions. Masdar remains committed to its ambitious renewable energy targets and partnerships to achieve a greener, cleaner future globally.
