Masdar’s Renewable Ambitions Under Scrutiny

Abu Dhabi’s Masdar, officially known as Abu Dhabi Future Energy Company, has significantly expanded its global renewable energy footprint in recent years, deploying around AED 30 billion ($8.2 billion) in equity investments and securing more than AED 16.5 billion in project financing across multiple countries. This aggressive growth strategy aligns with the UAE’s vision to lead sustainability and the energy transition worldwide, with Masdar aiming to reach a renewable energy portfolio capacity of 100 gigawatts by 2030.

Yet, as Masdar’s worldwide renewable investments accelerate, the company faces growing scrutiny and debate over the environmental, social, and economic impacts of its extensive projects, prompting questions about the sustainability of its development model.

Masdar’s Global Ambitions and Strategic Growth

Since its founding in 2006, Masdar has positioned itself as a leading driver of clean energy globally, operating in over 40 countries and developing projects spanning solar, wind, battery storage, and green hydrogen. In 2024 alone, Masdar secured investments and financial closures on projects including the 1.1GW Al Henakiyah Solar Power Plant in Saudi Arabia, the multi-utility AMAALA development, as well as renewable energy ventures in Greece, Spain, the US, Azerbaijan, and Uzbekistan.

The company is pushing forward with groundbreaking projects such as a planned $6-billion, 1GW uninterrupted clean power facility in Abu Dhabi, expected to be operational by 2027. Spanning roughly 90 square kilometers of desert, this initiative aims to provide constant baseload renewable energy, representing a major step in overcoming renewable intermittency challenges.

Masdar’s Chief Commercial Officer states, 

“Our mission lies in supporting the UAE’s transition towards a knowledge-based economy and renewable energy, accelerating the global energy transition through innovative and sustainable investments.” 

This strategic vision has established Masdar as one of the largest equity investors in renewable energy worldwide.

Environmental and Social Impact Concerns

Despite Masdar’s leadership role and ambitious targets, experts, activists, and communities have voiced concerns regarding the environmental sustainability and social implications of its projects.

Large-scale solar farms and wind facilities, while reducing carbon emissions, require vast land areas, often impacting fragile ecosystems and local land use patterns. The planned 90-square-kilometer baseload plant in Abu Dhabi’s desert, for example, will involve significant habitat alteration in an already sensitive region.

Environmental analysts caution that while renewable energy reduces greenhouse gases, the scale and siting of such mega-projects risk biodiversity loss and can strain water resources and local communities. Critics emphasize that renewable expansion must carefully balance energy goals with ecological preservation to avoid inadvertent harm.

Additionally, social impacts are receiving increasing attention. Past Masdar projects have been associated with local displacement and altered livelihoods, particularly when proposed in or near indigenous or rural communities. Civil society advocates urge transparent stakeholder engagement processes, fair compensation, and inclusion of local populations in decision-making.

Economic and Regulatory Context

Masdar’s activities occur within the UAE’s broader sustainability framework, including the UAE Net Zero by 2050 strategic initiative and programs like Abu Dhabi Sustainability Week that promote clean energy innovation and collaboration.

HE Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Masdar’s Chairman, has underscored the company’s role in the country’s climate and economic ambitions: 

“Masdar is integral to the UAE’s vision of leading global sustainability efforts, driving clean energy investments and fulfilling our net-zero objectives.”

However, as Masdar’s renewable portfolio grows, it faces challenges related to project financing, regulatory compliance, and alignment with international environmental standards. Independent assessments awarded Masdar’s green finance framework an “excellent” sustainability quality score but also noted the critical need for continuous monitoring and transparent environmental reporting.

Community Engagement and Innovation Initiatives

Recognizing these challenges, Masdar has emphasized investment in innovation and community empowerment. The Masdar City 10MW Solar Photovoltaic Plant, one of the Middle East's largest grid-connected renewable projects, not only generates approximately 19,100 MWh annually but also avoids 15,000 tonnes of CO2 emissions each year — equivalent to powering 500 homes.

Beyond projects, Masdar promotes education and empowerment programs such as the Youth4Sustainability initiative aiming to reach one million youth by 2030, fostering the next generation of sustainability leaders worldwide. The Zayed Sustainability Prize further supports SMEs and non-profits delivering innovative solutions to environmental and societal challenges.

HE Dr. Abdulla Humaid Al Jarwan, Chairman of Abu Dhabi Department of Energy, remarked that “energy transformation must become a shared responsibility, shaping a prosperous and sustainable future for generations to come.” Partnerships with entities like Dubai Electricity and Water Authority (DEWA) foster collaborative research and development focused on sustainability.

Global Partnerships and Strategic Alliances

Masdar’s expansion reflects strategic partnerships and multi-sector collaborations. At Abu Dhabi Sustainability Week 2025, Masdar announced alliances with global players such as the US Department of Energy and private technology companies to accelerate the deployment of scalable clean energy solutions.

The company’s multi-national project portfolio includes battery energy storage systems, solar farms, and wind energy across countries with diverse ecological and regulatory environments. Such diversification offers resilience and scale but increases complexity in environmental and social governance.

Transparency, Accountability, and Forward Outlook

While Masdar’s leadership in renewable energy and sustainability is widely recognized, ongoing environmental and social impact assessments are critical for ensuring that development benefits are realized equitably and sustainably.

Independent analysts caution that “renewable energy growth must not come at the cost of environmental degradation or community displacement,” urging Masdar and similar companies to deepen engagement with impacted stakeholders and enhance transparency.

Looking ahead, Masdar aims to increase its renewable capacity to 51 GW by the end of 2025 and plans to firmly establish the UAE as a global green energy hub and innovator. This goal is ambitious and comes with high expectations for balancing economic growth, climate goals, and ecological stewardship.

Masdar’s rapid expansion and landmark investments underscore the UAE’s strategy to lead the global energy transition. The company’s role in developing clean energy infrastructure worldwide highlights the potential for renewables to transform economies and reduce carbon footprints substantially.

At the same time, scrutiny over the environmental and social footprint of these projects underscores the complex challenges of scaling renewables sustainably. As Masdar pursues its ambitious targets, continuous and comprehensive impact monitoring, as well as transparent stakeholder engagement, will be vital to ensure that its green ambitions translate into genuinely sustainable outcomes.

The path forward for Masdar and the global renewable sector lies in harmonizing innovation, environmental responsibility, and community inclusion to achieve a truly sustainable energy future.