Masdar Agrees to Acquire 550MW Solar Project in Greece, Plans Battery Storage

Abu Dhabi-based renewable energy company Masdar has signed an agreement to acquire and develop a solar photovoltaic project in Greece with more than 550 megawatts (MW) of capacity, strengthening its presence in southeastern Europe's renewable energy market. Announced on 24 October 2026, the project is expected to become operational by year-end and generate enough electricity to supply more than 200,000 homes annually.

The acquisition from Lightsource bp will be carried out through TERNA ENERGY, Masdar's European renewable energy development platform. Alongside the agreement, Masdar has signed a memorandum of understanding (MoU) with Khazna Data Centers to explore clean energy solutions for Greece's expanding digital infrastructure. Both initiatives are part of growing cooperation between the United Arab Emirates and Greece in renewable energy, artificial intelligence, and advanced technologies.

 

550MW Solar Acquisition Expands Greece's Renewable Energy Capacity

 

The solar project is expected to become one of Greece's largest photovoltaic developments, adding significant renewable electricity generation capacity to the country's power system. Masdar expects the facility to support rising electricity demand from industrial activity, cloud computing, and artificial intelligence infrastructure. The transaction also includes two privately owned substations connecting the solar installation to Greece's electricity transmission network.

The acquisition remains subject to regulatory approval and customary closing conditions, with completion expected before the end of 2026. The companies have not disclosed the purchase price or the project's expected annual electricity generation. Masdar's estimate that the installation could supply more than 200,000 homes reflects projected generation capacity, not electricity already delivered.

 

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Battery Storage Planned to Improve Grid Flexibility

 

Masdar intends to integrate battery energy storage into the solar development to improve the flexibility and reliability of electricity supply. Battery systems can store excess solar electricity during periods of high generation and release it when demand increases or solar output declines. This can help electricity networks accommodate higher shares of renewable energy while reducing pressure on conventional generation during certain operating periods.

The planned storage component could also improve the project's ability to supply electricity outside peak solar-generation hours. However, Masdar has not disclosed the proposed battery capacity, investment requirements or construction timetable. The storage addition therefore remains a development plan rather than an operational component of the project.

 

Masdar and Khazna Explore Green Data Centers in Greece

 

Separately, Masdar and Khazna Data Centers have signed an MoU to explore developing data centers in Greece powered by renewable electricity and supported by energy storage. The proposed collaboration will combine Khazna's experience in data center development and operations with Masdar's expertise in renewable power generation and storage infrastructure.

The partnership comes as growing AI and cloud computing activity increases demand for reliable electricity infrastructure. Greece's location between Europe, Africa and Asia has also strengthened its ambitions to become a regional digital services hub. Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar, said, "As artificial intelligence and digital industries transform the global economy, access to reliable, affordable energy will be increasingly critical to competitiveness and growth." The MoU sets a framework to explore future projects, but it has not announced specific data center capacity, investment commitments, or a construction schedule.

 

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TERNA ENERGY Supports Masdar's European Expansion Strategy

 

The solar acquisition marks Masdar's first strategic investment through TERNA ENERGY since it acquired the Greek renewable energy company in April 2025. Masdar initially acquired a 70% stake in November 2024 in a transaction valuing TERNA ENERGY at approximately €3.2 billion, before taking full ownership. The company is using TERNA ENERGY as its principal platform for expansion across southeastern and central Europe.

TERNA ENERGY is targeting 6 gigawatts (GW) of operational renewable energy capacity by 2030, supported by a €5.5 billion investment plan. Mohamed Jameel Al Ramahi, Masdar's Chief Executive Officer, said, "These agreements represent another important milestone in our European growth strategy, expanding our portfolio with a high-quality solar asset that we will develop further with battery storage, and will deliver stable, long-term returns." The new development will complement TERNA ENERGY's existing portfolio while supporting Masdar's broader target of reaching 100 GW of renewable energy capacity globally by 2030.

The agreements illustrate the growing relationship between renewable energy investment and digital infrastructure development. As AI-driven electricity demand rises, projects that combine solar generation with storage could help countries expand their power systems while reducing dependence on fossil fuels.

For Greece, the proposed solar acquisition would add substantial renewable generation capacity, while the collaboration with Khazna could create opportunities for future clean-powered data centers. Immediate milestones include completing the acquisition, bringing the solar project online, and defining the scope of planned battery storage and digital infrastructure investments.

 

Source: Masdar