Masdar, the UAE’s flagship renewable energy company, has set its sights on becoming one of the largest players in the global clean energy sector, with plans to reach 100 gigawatts (GW) of solar and wind capacity by 2030.
In an interview with the Financial Times, Masdar’s CEO, Mohamed Jameel Al Ramahi, outlined the company’s growth ambitions, including significant market penetration in the Middle East, Europe, the U.S., and Asia.
As part of its ambitious strategy, Masdar aims to capture up to 35% of the renewable power capacity in the Middle East, 20% in Europe, and up to 25% in the U.S. by the end of the decade, according to Al Ramahi.
Asia will also feature prominently in Masdar’s portfolio, further diversifying its global footprint.
The Abu Dhabi-based company, jointly owned by ADNOC, Mubadala, and TAQA, is already on a global investment spree.
Masdar has been aggressively acquiring renewable energy assets, particularly in Europe and the U.S., as part of its strategy to grow its capacity.
In recent months, Masdar has closed several high-profile deals, solidifying its position as a key player in the global renewables sector.
In one of its most significant transactions, Masdar acquired Saeta Yield, a renewable power developer operating in Spain and Portugal, from Brookfield.
The $1.4 billion deal is one of the largest renewable energy transactions in Spain, a country that is rapidly becoming one of Europe’s top markets for clean energy investments.
Earlier this year, Masdar also struck an agreement with Spain’s energy giant Endesa to partner on 2.5 GW of renewable energy assets in Spain, further expanding its presence in the Iberian Peninsula. This was followed by a landmark $3.5 billion (€3.2 billion) deal to acquire Greece’s Terna Energy. This is the largest energy transaction in Greece’s history and one of the biggest in the European renewables market.
In the United States, Masdar’s footprint is growing rapidly. In early October, the company completed its acquisition of a 50% stake in Terra-Gen Power Holdings II, one of the largest independent renewable energy producers in the U.S. This acquisition provides Masdar with a major presence in one of the world’s largest clean energy markets.
Masdar’s push into offshore wind projects is also gaining momentum. The company is advancing its collaboration with Germany’s RWE on the Dogger Bank South offshore wind project in the UK.
Dogger Bank, expected to be the world’s largest offshore wind farm once completed, will significantly boost Masdar’s renewable energy portfolio and strengthen its position in the European market.
Masdar is part of a consortium that was shortlisted earlier this week by Saudi Arabia’s Power Procurement Company (SPPC) for the Kingdom’s fifth round of solar projects under the National Renewable Energy Programme (NREP).
The projects, with a combined value of over $2.1 billion, will be developed on a build, own, and operate (BOO) basis, with four major solar power projects planned across various provinces in Saudi Arabia.
To finance its global expansion, Masdar has been turning to the green bond market. In July, the company raised $1 billion through its second green bond issuance, following its debut issue of $750 million last year.
The bonds are part of a larger $3 billion programme aimed at financing new greenfield projects across the globe.
According to Masdar, the dual-tranche green bond issuance attracted strong interest from both regional and international investors.
The bonds were oversubscribed 4.6 times, with the order book peaking at $4.6 billion. Approximately 70% of the demand came from international investors, demonstrating the global appetite for investments in clean energy projects.
The proceeds from the bonds will be directed toward various renewable energy projects, including solar photovoltaic (PV), solar concentrated solar power (CSP), and wind energy developments. The funds will also be used for power transmission and distribution infrastructure as well as energy efficiency initiatives, according to the company.
Masdar has indicated that it plans to continue issuing green bonds annually in the coming years to help finance its aggressive expansion plans.
