Clifford Chance advises lenders on multi-billion dollar financing of the world’s first 24/7 gigascale solar PV and battery storage project in Abu Dhabi

Clifford Chance advised the lenders to Masdar on the landmark project, being the world’s first large-scale ’round-the-clock’ (RTC) gigascale solar photovoltaic (PV) and battery energy storage system (BESS) project in Abu Dhabi, financed through a multi-billion dollar project financing package (the “RTC Project”). The achievement of financial close on this financing represents a milestone not just for the region but for global renewable energy.

The RTC Project, developed by Abu Dhabi Future Energy Company PJSC – Masdar in partnership with Emirates Water and Electricity Company (EWEC), will deliver up to 1 gigawatt of baseload power every day generated entirely from renewable energy, allowing clean power to be dispatched 24 hours a day, seven days a week. Integrating a 5.2GW solar PV plant with a 19 gigawatt-hour BESS, the RTC Project will be the largest and most technologically advanced system of its kind in the world. The project has a 30-year power purchase agreement with EWEC.

Clifford Chance advised across the full complexity of the transaction, spanning the financing side, which incorporates a multi-tranche structure (including commercial loan facilities, Islamic financing tranches, hedging arrangements and Green Loan Principles) and the project documents drawing upon the team’s deep experience of IPP arrangements as well as the EPC, O&M and long-term service agreements. The team advised a syndicate of thirteen international and local banks, providing comprehensive transaction management through to financial close.

The Clifford Chance team core team comprised Richard Parris (Partner, Dubai), Jeremy Barker (Partner, Dubai); Serena Chang (Senior Associate, Abu Dhabi); Marya Manna (Associate, Dubai) and Philippe Mattoo (Associate, Dubai) (all Project Development and Finance), together with cross-practice and additional support from Inaamul Laher (Partner, Abu Dhabi); Adil Timirzey (Senior Associate, Abu Dhabi); Cheuk Yin Cheung (Head of Structured Products – Middle East); Shuaib Mirza (Legal Consultant – Islamic financing); Grace Bradshaw (Trainee, Dubai) and Osama Al Ahmad (Trainee, Dubai).