UAE Embarks on Grid-Scale Energy Storage Journey

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

The ambitious energy transition plans of the United Arab Emirates (UAE) took a big step forward with contracts awarded for one of the world's largest battery energy storage system (BESS) projects.

Largest BESS Project

The United Arab Emirates (UAE) has taken a major step forward in its energy transition plans by awarding contracts for one of the world's largest battery energy storage system projects. China's BYD Energy Storage has been selected by state-owned Abu Dhabi Future Energy Company (Masdar) and Emirates Water and Electricity Company (EWEC) to supply a single Haohan BESS facility with a capacity of 1,644 megawatts (MW)/11,275 gigawatt hour (GWh) for its round-the-clock (RTC) renewable energy project in Abu Dhabi. The RTC project will pair a 5.2-gigawatt (GW) solar power project with a 19-GWh BESS system and has been designed to deal with the issue of intermittency of renewable energy. Masdar said the RTC will be able to deliver 1 GW of continuous, baseload power "at a competitive cost." According to Industrial Info Resources data, there are three key BESS projects in the UAE worth almost US$6.3 billion in investment, with the RTC Project accounting for more than US$6 billion alone. Work started on the RTC last October with completion expected in 2027.

Financing Closes

Masdar confirmed that it has reached final close for the project. The company will invest US$1 billion with the remaining US$5.1 billion being supplied by a consortium of 13 international and local banks. Mazin Khan, chief financial officer at Masdar, said: "We now look forward to advancing the project to deliver reliable, affordable, clean energy around the clock." 

The Technology

BYD said that the Haohan system uses its 2,710 Ah Blade Battery, which it claims enhances "energy density and simplifies battery management." The system is designed for operation in desert conditions, with an IP66-rated enclosure and an operating temperature range of -30°C to 55°C. The Haohan, with its 14.568 MWh of storage capacity, is the world's largest integrated BESS, according to BYD. "Once operational, the project will produce gigascale baseload energy at a globally competitive rate for the first time, setting a new international benchmark and reaffirming the UAE's position in renewable energy development," stated BYD. "The project will act as a blueprint that can be replicated internationally to meet the growing demand for clean, secure, round-the-clock power." Earlier this year, Masdar contracted Chinese solar inverter and BESS supplier Sungrow to supply 7.5 GWh of its PowerTitan 3.0 energy storage systems for the RTC project, along with 2.6 GW of PV inverters for the solar project. 

UAE's Energy Transition

The UAE Energy Strategy 2050 calls for the tripling of renewable energy in its energy mix so that it can achieve net-zero emissions by 2050. It wants to have 50% renewables in its energy mix and cut emissions by 70%. The country plans to invest approximately US$54 billion in clean and alternative energy infrastructure. Gas and nuclear are expected to play a key role in supplying baseload power. According to GlobalData earlier this year, installed solar PV capacity in the UAE is projected to rocket from 6.7 GW in 2025 to 32.3 GW by 2035, a compound annual growth rate (CAGR) of over 17% during the period. 

Key Takeaways 

• The UAE continues its ambitious energy transition with contracts awarded for a giant US$6 billion energy storage project in Abu Dhabi.
• China's BYD Energy Storage has been selected by Masdar to to supply a battery energy storage system (BESS) facility with a capacity of 1,644 megawatts (MW)/11,275 gigawatt hour (GWh) for the round-the-clock (RTC) renewable energy project in Abu Dhabi.
• Industrial Info Resources is tracking three key BESS projects in the UAE worth almost US$6.3 billion in investment.

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).