Masdar explores 'gigawatt-scale' renewable energy projects in Albania

Company signs preliminary deal with Kesh to develop solar and wind projects

The Garadagh Solar PV Plant was built and is operated by Masdar in Baku, Azerbaijan. Pawan Singh / The National

Abu Dhabi clean energy company Masdar and Albania's state power utility Kesh have signed a preliminary joint venture agreement to explore the development of “gigawatt-scale” renewable projects in Albania.

The joint venture will develop and operate solar, wind and hybrid projects, with potential integration of battery storage, Masdar said on Wednesday. The energy produced is expected to be supplied to the Albanian market and exported to neighbouring countries.

“By leveraging the UAE’s world-class expertise in renewable energy and Albania’s abundant natural resources, our purpose-built, future-ready infrastructure will deliver more energy with fewer emissions to more people than ever before,” said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and Masdar chairman.

Several western Balkan nations depend on polluting lignite coal for at least half their electricity.

Albania, which relies heavily on hydropower, supplements its domestic energy production by importing electricity from its coal-burning neighbours. The country aims to achieve a 54.4 per cent share of renewable energy in its gross final energy consumption by 2030.

“The partnership … is a significant moment not only for Albania’s journey towards a sustainable and secure energy sector, but also embodies the spirit of the strategic partnership between Albania and the UAE,” said Belinda Balluku, Albania’s Deputy Prime Minister and Minister of Infrastructure and Energy.

Masdar, owned jointly by the Abu Dhabi National Energy Company – better known as Taqa, Adnoc and Mubadala, is active in 40 countries. It aims to expand its capacity to at least 100 gigawatts of renewable energy by the end of the decade, from about 20 gigawatts at present.

“As Masdar targets 100 gigawatts by 2030, this joint venture … exemplifies the scale and ambition needed to advance the global energy transition and we look forward to further collaborations in Albania and the Eastern Balkans,” said Mohamed Al Ramahi, chief executive of Masdar.

Separately on Wednesday, Masdar said it signed an agreement with Uzbekistan's Energy Ministry to develop a one-gigawatt wind farm in the Mingbulak region of the country.

Once operational, the wind farm will provide clean energy to 300,000 homes in the region. It is expected to generate 1,000 jobs during construction and 60 jobs during operation.

Last year, Masdar signed a deal to develop 2 gigawatts of wind power in the country, which aims to generate 25 per cent of its energy from renewables by 2030.

Masdar’s growth strategy combines acquiring existing businesses and developing projects across various global markets.

In September, the company signed definitive agreements with Brookfield Renewable and its institutional partners to fully acquire Spanish renewable energy company Saeta Yield. Masdar is investing Dh2.8 billion ($762.4 million) in the Seata deal, which has an implied enterprise value of $1.3 billion, the company said at the time.

The same month it also confirmed the financial close for the 154 megawatt Cibuk 2 wind farm in Serbia. The €144 million ($152.8 million) non-recourse project financing was secured through UniCredit, Erste Group and Erste Bank Serbia, which, Masdar said, is a “testament to the feasibility and the viability of renewable energy projects in Serbia”.

In July, Masdar said it invested €817 million to acquire about a 50 per cent stake in Spanish utility Endesa's solar energy assets.

It came a month after the company signed an agreement to acquire Greece’s Terna Energy for an enterprise value of €3.2 billion. Masdar will first acquire 67 per cent of Terna's outstanding shares upon completing the transaction and will then initiate an all-cash mandatory tender offer to purchase the remaining shares of the company, it said in June.