Masdar expands Saudi renewable energy portfolio

Masdar, a Abu Dhabi energy company, has been awarded two solar photovoltaic (PV) projects, with a combined capacity of 2 GW, under the sixth round of bidding in Saudi Arabia's National Renewable Energy Program (NREP)

The Independent Power Producer (IPP) projects, for the 1,400 MW Najran plant and the 600 MW Ad Darb facility, 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).

The Ad Darb plant, which will be located in Jizan Province, is expected to begin commercial operations in late 2027, with the Najran project, based in Najran Province, starting commercial operations in the first half of 2028.

Principal Buyer is the entity responsible for conducting predevelopment studies, tendering power generation projects, and signing Power Purchase Agreements with project developers.

To date, the company has awarded a total capacity of 43.2 GW, with 12.3 GW being already connected to the grid.

Masdar has secured the largest capacity in the highly competitive SPPC bidding for three consecutive years, with other solar projects in development including the 1,100MW Al Henakiyah project, scheduled to begin commercial operations next year, and the 2,000 MW Al Sadawi project, expected to start operation in 2027.

Established in 2006, Masdar is a clean energy investor, developer and operator, with a global portfolio capacity of over 51 GW and a mandate to increase its portfolio to 100GW by 2030.

Masdar opened an office in Saudi Arabia in 2022 to support the nation’s clean energy objectives.

Masdar’s operational portfolio in the Kingdom includes the 300 MW Jeddah Solar Power Plant and the 400 MW Dumat Al Jandal Wind Farm, Saudi Arabia’s first wind project and the largest in the Middle East.

At ADIPEC 2025, Al-Bahar will create a platform for innovation and collaboration. (Image source: Al-Bahar)

Mohamed Abdulrahman Al-Bahar, the authorised dealer for Cat Equipment in the UAE, Qatar, Kuwait, Oman, and Bahrain, has announced its participation in ADIPEC 2025, one of the world’s largest and most influential energy exhibitions.

The event will take place from 3-6 November 2025 at the Abu Dhabi National Exhibition Centre, where Al-Bahar will welcome industry professionals, partners, and customers to Stand 9430 to explore next-generation power solutions built for sustainability, performance, and reliability.

Under the theme Powering a Sustainable Future, Together, Caterpillar and Al-Bahar will showcase advanced energy solutions that help customers reduce operational costs, lower carbon emissions, and extend equipment lifecycles. As the global energy sector transitions towards cleaner and more efficient operations, Caterpillar remains at the forefront with its high-efficiency engines, rebuild programmes, and data-driven lifecycle solutions.

“This year at ADIPEC, we are excited to demonstrate how businesses in the oil and gas industry can achieve high performance while reducing both operational and environmental costs,” said Amr Diasty, Petroleum, Marine & Industrial Manager at Al-Bahar. “Through these innovations, we aim to empower our customers to pursue long-term sustainability and profitability.”

At ADIPEC 2025, Al-Bahar will create a platform for innovation and collaboration, engaging with customers, industry leaders, and decision-makers from across the globe. Visitors can look forward to live demonstrations, interactive sessions, and expert consultations tailored to their operational needs.

Attendees will gain first-hand experience with Caterpillar’s high-efficiency products, learn practical emission-reduction strategies, and discover how energy-intensive industries are achieving greater results with Cat Engines.

Mohammed Sherif said, “We expect to connect with our partners and sharing our vision for smarter, cleaner, and more efficient power solutions, and our presence at ADIPEC 2025 would be another way to honor our valuable customers, whose trust drives us to continuously innovate and raise the bar for performance.” 

His Highness Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, Deputy Chairman of the Presidential Court for Development and Fallen Heroes’ Affairs, has witnessed the groundbreaking of the world’s largest combined solar power and battery storage project, a landmark facility capable of delivering 1GW of continuous, baseload renewable energy around the clock.

Developed by Masdar and Emirates Water and Electricity Company (EWEC), the project reflects the vision of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates, to drive sustainable development and energy diversification.

This world-first initiative will integrate a 5.2GW solar photovoltaic (PV) plant with a 19GWh battery energy storage system (BESS), the largest and most advanced of its kind globally. Employing AI-enhanced forecasting, intelligent dispatch, and predictive analytics, the facility will redefine the limits of renewable energy by overcoming intermittency and providing gigascale baseload power at a globally competitive tariff.

Once operational in 2027, the project will generate 1GW of steady, clean energy 24/7, offsetting approximately 5.7mn tonnes of carbon emissions annually. Representing a capital investment exceeding US$6bn, it will create more than 10,000 jobs and spur new manufacturing and service industries, supporting the UAE’s socioeconomic growth and energy transition goals.

By supplying reliable renewable power to meet growing demand from AI and the digital economy, the facility also aligns with the UAE’s National Artificial Intelligence Strategy 2031, which aims to position the country as a global leader in AI-driven innovation and sustainability.

Growing renewables

Masdar continues to expand its expertise in battery storage through projects in the United States, the United Kingdom and other global markets, including the world’s first storage system connected to a floating offshore wind farm. The company remains on track to achieve its target of reaching 100GW of clean energy capacity worldwide by 2030.

His Excellency Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and Chairman of Masdar, said, "Masdar and EWEC are breaking ground on the future, here in Abu Dhabi. With the unwavering support of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, and His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, and in the presence of His Highness Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, this gigascale project is a step towards redefining the role of renewable energy for the information age. This breakthrough is the culmination of Masdar's two decades of excellence in renewables and is testament to the power of collaboration in Abu Dhabi's energy ecosystem. As the world looks for secure, sustainable and affordable energy, the UAE is proud to offer a new vision for technologically enabled growth."

Mohamed Jameel Al Ramahi, CEO at Masdar, said, "This groundbreaking is a proud occasion for Masdar and the UAE, and represents a pivotal moment in clean energy transformation. This world-first project, the largest and most ambitious in Masdar's history, is a blueprint for the world, demonstrating that renewable energy can be dispatched around the clock. By overcoming the challenge of intermittency, we can provide sustainable power to meet fast-growing demand from advancements in artificial intelligence and other technologies. We look forward to working closely with EWEC and our partners to deliver this landmark project, which will set the global standard for renewable energy development and support other nations in delivering on their clean energy objectives."

Ahmed Ali Alshamsi, CEO at EWEC, said, "This landmark project is a testament to the vision of President His Highness Sheikh Mohamed bin Zayed Al Nahyan, and the unwavering commitment of EWEC and our partners in commissioning and developing transformative innovations that support national objectives. Abu Dhabi and the UAE are a global hub for artificial intelligence research, innovation, and adoption, and this project will ensure that the energy needs of this key sector are met sustainably, powering the next generation of economic growth. We are proud to have strategically collaborated with Masdar on this iconic project, and to break ground on a new era of energy in the UAE."

The CM welcomes cross-border participation.

As Europe accelerates its transition to cleaner energy, two major challenges are emerging: ensuring there's always enough reliable power available, and maintaining the flexibility needed to balance supply and demand.

These issues are especially pressing in systems that rely heavily on renewable sources like solar and wind, which are inherently variable and less predictable.

In recent years, traditional thermal power plants—particularly combined cycle gas turbines (CCGTs)—have seen their operating hours decline. This trend threatens their economic viability and has led to the shutdown of several units, raising concerns about the long-term adequacy of the power system. Italy’s experience reflects this shift, with data showing a narrowing margin of available capacity. Fig. 1 shows the trend of adequacy margin experienced in Italy in the last years.

To address these concerns, Italy has gone beyond short-term energy markets and invested in forward-looking mechanisms that secure future capacity and flexibility. One of the country’s most innovative tools is the Capacity Market (CM), designed to ensure that enough “firm capacity”—power that can be counted on at any time—is available years in advance.

Italy was among the first in the EU to launch a CM, holding its inaugural auction in 2019 for delivery in 2022. The most recent auction took place in February 2025, securing capacity for 2027. These auctions are open to
all technologies, except those exceeding a set CO₂ emissions threshold—effectively excluding coal and other high-polluting sources. Successful bidders receive a fixed annual premium (€/MW/year), and in return, they commit to offering their capacity in the day-ahead and ancillary services markets.

Importantly, the CM also welcomes cross-border participation, allowing foreign providers to contribute firm capacity if they secure transmission rights at Italy’s borders. Even variable renewable energy sources (VRES) like solar and wind are participating. While their awarded firm capacity may seem modest—just 5.8% or 2.2 GW—it represents around 14 GW of installed capacity when adjusted for reliability factors.

At the European level, capacity remuneration mechanisms like Italy’s CM are now recognised as essential tools for maintaining system adequacy during the clean energy transition. This approach is formally endorsed in the EU’s Electricity Market Design Directive (1711/2024) and Regulation (1747/2024).

Beyond capacity, flexibility is another critical piece of the puzzle. To meet this need, Italy has introduced a new market mechanism known as MACSE, aimed at supporting energy storage solutions such as battery systems (BESS) and pumped hydro. Through pay-as-bid auctions organised by the national grid operator (TSO), investors can secure annual premiums (€/MWh/year) in exchange for participating in grid-balancing services.

The first MACSE auction, held on September 30, 2025, focused exclusively on battery storage and offered 10 GWh of capacity. The competitive bidding resulted in remarkably low prices—just €13,000/MWh/year, well below the regulatory cap of €37,000/MWh/year—highlighting the efficiency of Italy’s auction design.

Under MACSE, storage operators receive 20% of the revenues generated during grid operations, while the remaining 80% goes to the TSO to help offset network costs. This model not only incentivises investment in storage but also ensures that flexibility resources are actively integrated into the system.

Italy’s proactive approach—combining long-term planning with innovative market design—is setting a benchmark for how to build resilient, low-carbon power systems. As the energy transition gathers pace, these mechanisms will be crucial in keeping the lights on while reducing emissions. 

This article was provided by CESI.