Abu Dhabi's clean energy company Masdar is exploring potential entry into China's renewable energy market, aiming to expand its capacity to 100 gigawatts by 2030. This move is part of the company's broader strategy to grow its renewable energy footprint globally, according to Masdar's chief operating officer, Abdulaziz Alobaidli.
Masdar is currently evaluating the Chinese market and engaging with potential partners to identify the best approach for entering the world's largest renewable energy market. Alobaidli highlighted the competitiveness of the Chinese market, driven by strong local players, and emphasized the importance of carefully crafting an entry strategy.
“China is a very competitive market with local players, so we are not yet there. However, we are assessing the market and engaging with potential partners to decide our ideal market entry strategy”, Alobaidli said during the World Future Energy Summit in Abu Dhabi.
China was the main driver of global renewable energy capacity growth in 2023, adding 298 gigawatts to the world's total capacity of 3,870 gigawatts, according to the International Renewable Energy Agency (Irena).
Masdar, owned by Taqa, Adnoc, and Mubadala, operates in 40 countries and is currently focused on expanding its renewable energy capacity from 20 gigawatts to 100 gigawatts by the end of the decade.
The company's exploration of the Chinese market occurs amid rising trade tensions between Beijing and Washington. US Treasury Secretary Janet Yellen has warned against China's potential flooding of global markets with cheap clean energy exports and has suggested that measures such as tariffs may be considered.
Alobaidli noted that Masdar has plans to address potential supply chain challenges stemming from geopolitical tensions and conflicts, including the Russia-Ukraine conflict and ongoing tensions in the Middle East.
“We diversify our supply chain to ensure that if challenges start to materialize, we have the right mitigations”, Alobaidli said.
In addition to exploring China, Masdar is expanding its presence in Europe, where the adoption of clean energy has accelerated due to efforts to reduce dependence on Russian oil and gas. In February, Masdar acquired a 49 percent stake in the UK's Dogger Bank South project, one of the world's largest planned offshore wind farms, as part of an £11 billion joint investment with German company RWE.
The company plans to pursue additional acquisitions in Europe and the US, targeting solar, onshore, and offshore wind projects, and is open to exploring new technologies.
To fund its renewable projects globally, Masdar plans to raise between $750 million and $1 billion through the sale of a green bond this year. This will be the company's second green bond offering, following a successful $750 million offering in 2023 as part of a $3 billion bond program listed on the London Stock Exchange and the Abu Dhabi Securities Exchange.