UAE’s Masdar committed to open trade policy amid global supply chain challenges, CEO says

Masdar is committed to an “open trade” approach when it comes to sourcing products, even though trade disruptions have prompted countries to rethink their supply chain strategies, the Abu Dhabi clean energy company ’s chief executive has said. Before Covid-19, global trading was characterised by free trade and the outsourcing of operations. However, the pandemic disrupted supply chains and sparked national security concerns, prompting some countries to reconsider how they produce critical components, Mohamed Al Ramahi told The National on the sidelines of the World Utilities Congress on Tuesday. Meanwhile, the Ukraine war has created “another geopolitical tension” between the East and the West, forcing policymakers worldwide to think about “in-shoring or reshoring” supply chains, he added. In-shoring and reshoring refer to the process of relocating manufacturing or business operations back to a company's home country. “We will see that behaviour continue, in my belief, in the future. For us at Masdar, we believe in an open trade philosophy,” Mr Al Ramahi said. "We believe that products should be produced where it is most competitive, and we are comfortable sourcing them from wherever and whoever, as we believe that's the best solution to provide our customers with the best price." 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. “Every year, you will see a few gigawatts within our region, either being auctioned or being awarded to developers, and Masdar is at the heart of all of these development activities, mainly in solar technology or wind technology,” Mr Al Ramahi said. In the near future, many new projects will emerge in energy storage technology in the Gulf region, as this sector is still in its early stages and will involve greenfield projects, he added. Masdar’s growth strategy combines both acquiring existing businesses and developing new projects from the ground up across various global markets. “Part of our growth story has multi-market penetration strategy and that [includes] acquisitions,” Mr Al Ramahi said. In July, Masdar said it invested €817 million ($908.34 million) to acquire a nearly 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. “We have done some big announcements when it comes to acquisitions, either acquiring a platform or jointly acquiring a portfolio with a partner, but then we also have our greenfield developments within the region, in Asia, in some parts of Europe, [and] in the US,” Mr Al Ramahi said. On Tuesday, Masdar and its partners – EDF Renewables and Korea Western Power – announced the successful financial closing of the 1.5-gigawatt Al Ajban solar plant in Abu Dhabi. Following a successful bid, the project company owned by EDF Renewables and Korea Western Power, with Masdar as local shareholder, signed a 30-year power purchase agreement with the Emirates Water and Electricity Company (Ewec), the companies said. The project, expected to be one of the world’s largest single-site solar power plants, will deploy about 3 million solar panels to generate enough electricity for roughly 160,000 homes across the UAE. Upon full commercial operation, the plant is expected to reduce Abu Dhabi’s carbon dioxide emissions by more than 2.4 million tonnes per year. Last year, Abu Dhabi inaugurated the two-gigawatt Al Dhafra solar power plant, one of the world's largest solar projects. “There's a lot to do, we are still not there yet. The UAE has a clear target to decarbonise and to achieve carbon neutrality,” Mr Al Ramahi said. The UAE Energy Strategy 2050 aims to triple the share of renewable energy and invest up to Dh200 billion by 2030 to meet the country’s rising energy demand driven by its rapidly expanding economy.

UAE’s Masdar committed to open trade policy amid global supply chain challenges, CEO says

Many energy storage technology projects are set to come up in the near future across the Gulf, Mohamed Al Ramahi tells The National