Masdar achieves record portfolio growth of 62 per cent last year

Abu Dhabi Future Energy Company - Masdar, has released its 12th Annual Sustainability Report which highlights how the company strengthened its position as a global clean energy leader last year, delivering record portfolio capacity growth and increasing its global footprint through major acquisitions in Europe and the United States.

Masdar’s Sustainability Report highlights the company’s continued progress in key sustainability areas, including environmental performance, social impact, ethical business practices, and workforce diversity. It also reinforces Masdar’s leadership in sustainable finance with the expansion of its green bond programme in 2024.

Masdar achieved a record portfolio growth of 62 per cent last year, with its operational, under-construction, and advanced pipeline capacity reaching 51 gigawatts (GW), more than halfway to the company’s 2030 target of 100GW.

Total capacity for operational and under construction projects almost doubled to 32.6GW, with operational projects generating 29,225 gigawatt-hours (GWh) of clean electricity, avoiding 15.5 million tonnes of carbon dioxide equivalent.

Landmark acquisitions fueled Masdar’s growth in 2024. With its strategic expansion in Europe, Masdar acquired Greece’s TERNA ENERGY for a total enterprise value of €3.2 billion.

Masdar also acquired a 50 per cent stake in Terra-Gen, one of the largest independent renewable energy producers in the United States. Terra-Gen’s portfolio will play a key role in driving Masdar’s global capacity growth. The investment will also accelerate collaboration between the US and the UAE in alignment with their strategic energy partnership for reliable, affordable and sustainable energy.

In the Iberian Peninsula, another core European market, Masdar expanded further by acquiring Saeta for $1.4 billion and securing a 49 per cent stake in a 2GW operating solar portfolio from Endesa S.A.

Mohamed Jameel Al Ramahi, Chief Executive Officer, Masdar, said, “As Masdar continues to evolve as a global clean energy leader, 2024 marked a defining chapter in our journey, as we expanded our presence in key global markets, strengthened our financial credentials, and drove initiatives that reflect our commitment to responsible growth and inclusive progress.

As a global investor, developer, and operator, we are delivering impact at scale across key geographies and helping to shape the future of clean energy. We will continue to drive innovation in the clean energy sector and reinforce our position as a partner of choice for governments and communities across the globe.”

Aligned with its focus on diversity, inclusion, and leadership development, Masdar is committed to promoting a strong female representation in management, with women now comprising 20 per cent of its management team. It is also steadfast in its approach to empowering local communities through sustainable urban development and inclusive energy access initiatives across its projects.

Meanwhile Abu Dhabi Future Energy Company - Masdar, and consortium partners GD Power and Korea Electric Power Corporation announced they have reached financial close for the 2-gigawatt (GW) Al Sadawi solar photovoltaic (PV) project, a landmark project under the National Renewable Energy Programme (NREP) which is led and supervised by the Ministry of Energy.

Project financing facilities have been secured with eight leading regional and international lenders, which will cover a substantial part of the total project costs, estimated at approximately $1.1 billion.

Mohamed Jameel Al Ramahi, Chief Executive Officer, Masdar, said, “Masdar is actively committed to supporting Saudi Arabia’s clean energy objectives, and this landmark project will add to our growing portfolio in the Kingdom. Today’s announcement marks a significant step in Saudi Arabia’s clean energy journey, with the Al Sadawi plant set to be one of the largest solar power projects in the world. We look forward to working closely with our partners to achieve full energisation for the project, which will help shape the future of clean energy for the Kingdom.”

The Al Sadawi Independent Power Producer (IPP) Project marks a significant milestone in the Kingdom’s journey towards its Energy Mix target of achieving 50 per cent renewable energy by 2030. Set to be one of the world’s largest solar plants, the project will contribute substantially to sustainable development and reduce carbon emissions in the Kingdom of Saudi Arabia.

Located in the Eastern Province, the project will be developed on a Build, Own, and Operate (BOO) basis, with a 25-year Power Purchase Agreement (PPA) signed with the Saudi Power Procurement Company (SPPC) late last year.

The plant is expected to commence early generation at full capacity in early 2027, with commercial operation targeted for the same year.

The participating banks in the Al Sawadi financing are Standard Chartered Bank, KEXIM, ADCB, BNP Paribas, ADIB, Bank of China, HSBC and Société Générale.

WAM