UAE Solar Plant Secures $871M in Green Bonds

A massive solar plant powering 200,000 homes in the United Arab Emirates just secured $870.75 million in green bonds, showing that renewable energy has become a safe bet for long-term investors.

The Al Dhafra solar power plant near Abu Dhabi issued 30-year bonds during Abu Dhabi Sustainability Week 2026. The facility held the title of world's largest single-site solar plant when it started operating in 2023, using nearly four million solar panels spread across the desert just 35 kilometers from the capital.

Five energy companies including Abu Dhabi National Energy Company and French power giant EDF jointly own the plant. They're using the bond money to refinance existing debt while keeping the facility running smoothly for decades to come.

The bonds carry a 5.794% interest rate and won't mature until June 2053, giving investors a steady return over nearly three decades. Major banks including BNP Paribas and HSBC coordinated the deal, bringing traditional finance investors into the renewable energy sector.

This marks the second time Abu Dhabi has successfully issued green bonds for a solar project. The Emirates Water and Electricity Company previously brought solar bonds to market in 2022 for the Noor Abu Dhabi project.

The Ripple Effect

Ahmed Ali Alshamsi, the electricity company's CEO, explained that bringing fixed income investors into solar power does more than just fund one plant. The competitive long-term capital strengthens investor relationships across the UAE while freeing up money that can be redeployed into future solar projects.

After more than two years of commercial operations, the plant earned certification as a 100% green asset based on its operational track record and projected performance. That stamp of approval from certifiers gives traditional bond investors confidence that their money is genuinely supporting clean energy.

The deal demonstrates how renewable energy has matured from a niche investment into a mainstream asset class. Pension funds, insurance companies, and other conservative investors who buy 30-year bonds now see large solar installations as reliable long-term bets alongside traditional infrastructure.

Abu Dhabi's success with green bonds could encourage other Gulf nations to pursue similar financing for their renewable energy ambitions, accelerating the region's transition away from fossil fuel dependence.