French energy major Engie has reached the financial close on a 1.5-gigawatt solar project in Abu Dhabi, marking the company’s largest renewable energy investment globally and underscoring a strategic shift toward the Middle East as momentum in the U.S. and Europe slows.
The Khazna solar park, set to begin commercial operations in 2028, is structured under a 30-year power purchase agreement with the Emirates Water and Electricity Company and will be capable of supplying clean electricity to roughly 160,000 homes across the United Arab Emirates. The project forms a central pillar of the Gulf region’s expanding renewable energy ambitions and reflects broader industry confidence in long-term demand for green infrastructure.
Engie already operates a significant portfolio of gas-fired generation and water desalination assets in the Gulf Cooperation Council, but the Khazna project represents a decisive pivot toward renewable capacity. With ambitious regional goals aiming for 95 GW of installed renewable capacity by 2030 — up from around 55 GW today — the UAE and neighbouring states are attracting substantial global investment in solar, wind, and supporting grid technologies.
Company executives highlighted that while renewable energy deployment in the U.S. and Europe remains important, regulatory hurdles and shifts in policy emphasis have prompted a more aggressive push into markets like the Middle East where project sizes are larger and policy frameworks are increasingly supportive.
Engie’s strategy is boosted by partnerships with major Chinese engineering and equipment firms — including LONGi and PowerChina — which are helping to engineer and supply critical components to ensure project viability and long-term profitability. Despite low power prices in the region, these collaborations are designed to maintain cost efficiency and deliver on return expectations under competitive conditions.
In the broader context, renewable energy developers globally have faced a period of recalibration as supply chain costs fluctuate and policy incentives vary by geography. However, the Middle East’s combination of abundant land, reliable sunlight, and strategic governmental backing is emerging as a focal point for large-scale solar investment.
In addition to utility-scale projects like Khazna, interest is growing in ancillary segments such as energy storage, smart grid technologies, and integrated water-energy systems — areas where companies like Engie see significant growth potential. Energy transition analysts note that continued diversification into renewables is essential for Gulf economies, particularly as global demand for cleaner power accelerates and traditional hydrocarbon models are reassessed.
Engie’s positioning illustrates how major energy players are adapting to regional dynamics: relocating capital toward markets with favourable regulatory environments, strategic geopolitics, and scalable project pipelines. This shift not only supports global decarbonisation goals but also enhances energy security across multiple continents.
