ADNOC’s Solar Strategy 2025: From Oil Giant to Global Clean Energy Powerhouse

Industry Adoption: How ADNOC is Integrating Solar Power Across its Value Chain

Between 2021 and 2024, Abu Dhabi National Oil Company (ADNOC) initiated a pragmatic, large-scale adoption of solar power focused primarily on decarbonizing its core oil and gas operations. The strategy’s cornerstone was the landmark October 2021 agreement with Emirates Water and Electricity Company (EWEC), which, since January 2022, has supplied up to 100% of ADNOC’s onshore grid power from solar and nuclear sources. This made ADNOC the first major oil and gas firm to decarbonize its grid power at this scale, a move enabled by offtake from massive projects like the 2 GW Al Dhafra Solar PV plant. The application of solar quickly diversified, demonstrating its operational flexibility. ADNOC Drilling adopted mobile solar farms to power remote camps, while ADNOC Distribution began installing rooftop solar panels across its service station network in 2023, generating 5,083 MWh of clean energy in 2024 alone. This period was characterized by using commercially proven solar technology as a tool to reduce Scope 2 emissions and improve carbon intensity across existing assets.

The period from 2025 to today marks a significant inflection point, shifting from internal decarbonization to strategic expansion and technological leadership. The application of solar has become more ambitious and integrated. An MoU signed in January 2025 to explore powering the energy-intensive Shah Gas Plant with solar signifies a push to decarbonize heavy upstream assets, moving beyond general grid supply. Furthermore, the application of solar is now being positioned as an enabler for future-facing industries, exemplified by the partnership with Microsoft to power high-demand AI data centers. The most telling shift is the move from simple generation to solving intermittency. Masdar’s January 2025 announcement of a groundbreaking 5.2 GW solar PV project coupled with a massive 19 GWh battery storage system is designed to provide uninterrupted 24/7 renewable power. This demonstrates a strategic pivot from using solar as a supplemental source to deploying it as a core component of a stable, dispatchable, and modern energy system.

Table: ADNOC’s Strategic Investments in Solar and Lower-Carbon Energy

Table: Key ADNOC Partnerships Driving its Solar and Clean Energy Strategy

Geography of ADNOC’s Solar Strategy

Between 2021 and 2024, the geographic footprint of ADNOC’s solar activities was intensely focused on the United Arab Emirates. This domestic concentration was strategic, aimed at leveraging national renewable energy assets to decarbonize its vast operational base. Key evidence includes the clean power agreement with EWEC for its entire onshore grid, the $3.8 billion project to electrify its offshore operations in Abu Dhabi waters, and the rollout of rooftop solar on ADNOC Distribution service stations across the country. The strategy was to build a resilient, low-carbon operational foundation at home. The first signal of international ambition appeared with ADNOC’s 2022 investment in bp’s H2Teesside blue hydrogen project in the UK, a calculated entry into a foreign clean energy market.

From 2025, the geographic focus has dramatically expanded from domestic optimization to global ambition. The launch of the $80 billion XRG investment vehicle in February 2025 and the ADNOC-TAQA global renewables venture in June 2025 explicitly target international energy assets. These moves institutionalize a global mandate for clean energy investment, moving far beyond the initial UK partnership. While the UAE remains a hub for pioneering, large-scale projects—like the gigascale 5.2 GW solar and 19 GWh battery storage facility in Abu Dhabi—the capital and strategic intent are now geared toward building a diversified global energy portfolio. This tells us that ADNOC sees solar and renewables not just as a tool for domestic compliance but as a primary pillar for future international growth.

Technology Maturity in ADNOC’s Solar Portfolio

In the 2021–2024 period, ADNOC’s strategy centered on the large-scale deployment of commercially mature and de-risked solar technologies. The focus was on execution and scale rather than technological pioneering. The core of this was utility-scale solar PV, with ADNOC acting as a major offtaker for projects like the 2 GW Al Dhafra plant, and distributed solar PV, with the phased installation of panels on its service station network. This use of proven technology allowed ADNOC to achieve rapid and quantifiable decarbonization results. At the same time, the company initiated small-scale pilots for future technologies, including a green hydrogen refueling station using solar-produced hydrogen (November 2023) and a solar-powered CO2-to-rock mineralization project (November 2024), effectively using the earlier period to test next-generation concepts.

The period from 2025 to today marks a clear shift toward deploying and scaling more technologically advanced and integrated energy systems. The key validation point is Masdar’s 5.2 GW solar and 19 GWh battery storage project, announced in January 2025. This moves far beyond simple solar generation; it is a commercial-scale project designed to provide firm, 24/7 dispatchable power, directly addressing the critical challenge of intermittency. This represents a significant leap in technical complexity and market ambition. Concurrently, ADNOC is commercializing technologies that leverage its clean energy supply, such as the pilot to produce “turquoise” hydrogen and graphene from methane (January 2025), powered by its solar and nuclear grid energy. The introduction of EV battery-swapping stations at solar-equipped service stations further shows a move toward building integrated, clean energy ecosystems. Technology is no longer just for decarbonization but is now a platform for creating new products and business models.

Table: SWOT Analysis of ADNOC’s Solar Strategy Evolution

Forward-Looking Insights and Summary

The most recent data from 2025 signals that ADNOC’s solar strategy is accelerating into two key areas: global expansion and deep technological integration. The year ahead will be defined by the execution of this ambitious pivot. Market actors should closely monitor the first acquisitions made by the $80 billion XRG investment arm, as they will provide a clear roadmap of ADNOC’s geographic and technological priorities in the global renewables race. Domestically, the progress of the MoU to power the Shah Gas Plant with solar will be a critical litmus test for decarbonizing heavy industrial assets and a signal for similar projects across the industry.

What is gaining traction is the concept of solar as an enabling platform. The partnerships with Microsoft (for AI) and the internal pilots for turquoise hydrogen demonstrate that ADNOC is moving beyond viewing solar as just a power source. Instead, it is being integrated as a foundational element for new, low-carbon value chains. The key signal to watch is the development of the 5.2 GW solar and 19 GWh battery storage project. Its successful implementation would not only set a new global benchmark for dispatchable renewables but would also cement ADNOC’s transformation from a company that *uses* solar to one that *masters* and *monetizes* advanced clean energy systems on a global scale.

Frequently Asked Questions

What was the main goal of ADNOC’s solar strategy in the initial 2021-2024 period?
Between 2021 and 2024, the primary goal was the large-scale decarbonization of ADNOC’s core oil and gas operations within the UAE. This was achieved by using commercially proven solar technology to reduce Scope 2 emissions, highlighted by the landmark agreement with EWEC to supply up to 100% of its onshore grid power from clean energy sources.

How has ADNOC’s strategy evolved since 2025?
Since 2025, the strategy has shifted from internal decarbonization to global expansion and technological leadership. This is marked by the creation of major international investment vehicles like the $80 billion XRG, partnerships to power new industries like AI data centers with Microsoft, and a focus on solving intermittency with projects like Masdar’s gigascale solar and battery storage facility.

What is the significance of the Masdar solar and battery storage (BESS) project?
The Masdar project (5.2 GW solar with 19 GWh of battery storage) is significant because it represents a move beyond simple solar generation to solving the critical challenge of intermittency. Its purpose is to provide reliable, 24/7 dispatchable renewable power, positioning solar not as a supplemental source, but as a core component of a modern, stable energy system.

Is ADNOC’s solar strategy focused only on the UAE?
No. While the 2021-2024 period was intensely focused on domestic decarbonization, the strategy from 2025 has a clear global ambition. The launch of the $80 billion XRG investment vehicle and the ADNOC-TAQA global venture are designed to acquire and manage a global portfolio of gas and green energy assets, signaling a major push into international renewables markets.

How is ADNOC leveraging its investment in Masdar?
ADNOC’s 24% stake in Masdar is a cornerstone of its strategy. It provides direct access to world-class renewables expertise and a platform for ambitious projects. This is exemplified by Masdar’s announcement of the $6 billion gigascale solar and battery storage project, which directly aligns with ADNOC’s new focus on technological leadership and providing 24/7 clean power.