Future solar energy deals for Total and Masdar?


A successful partnership between Total and Masdar may lead to further collaboration.

Solar Plant

The Abu Dhabi solar plant Image: Masdar

The relationship between the two companies for renewable energy, together with Spain's Abengoa, has produced the Middle East's largest solar plant in Abu Dhabi.

Set to be fully operational in the next few months, the plant (Shams-1) has already started feeding electricity into the grid.

The success of the partnership has led Total to seek further French-Emirati joint ventures, inside and outside the United Arab Emirates. Masdar is also keen to grow its overseas energy portfolio.

Total is setting its sights on Saudi Arabia for its next big solar project. Seen as having the most ambitious solar targets in the Arabian Gulf, Saudi Arabia is developing a programme to build 41 gigawatts of solar capacity by 2032, at a cost of US$109 billion (Dh400.36bn). The kingdom, faced with meeting its electricity requirements by burning crude, also needs to improve employment prospects for its citizens.

Total will focus on photovoltaic systems and not pursue growth with the concentrated solar power technology that features in Shams-1. The French company has a controlling stake in the US photovoltaic panel producer SunPower, which it acquired last year.

Total sees the future in the solar sector, unlike Shell and BP which have exited the solar business.