ECI and Masdar work towards developing renewable energy in the UAE

In a Memorandum of Understanding (MoU) signed by Massimo Falcioni, Chief Executive Officer of ECI, and Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, the two institutions have agreed to explore building together cost-effective insurance and financial guarantees to support Masdar’s global development ambition of achieving clean and renewable energy infrastructure development.

The agreement is a result of the shared objective of ECI and Masdar to solidify the position of the UAE as a global leader in sustainability initiatives and renewable energy and accelerate the diversification of the national economy. It is also in line with the objectives of the UAE Energy Strategy 2050, which aims to increase the contribution of clean energy in the total energy mix from 25% to 50% by 2050, and reduce carbon footprint of power generation by 70%. The UAE signed the Paris Agreement in 2016, joining over 170 countries across the world.

Under this MoU, ECI and Masdar will explore the establishment of political and commercial risk insurance solutions to improve bankability and attract cheaper capital to Masdar’s renewables projects both in the UAE and globally. ECI will also support the company in its global expansion through tailor-made credit insurance solutions in order to enhance its overall viability and competitiveness globally, as well as through extending its products and solutions to other companies registered at Masdar City.

The UAE federal credit export company will also assist Masdar in terms of attracting funding partners to new geographies and reducing the cost of bank funding in order to allow the company to request its preferred bank, in order to discount the invoices – secured by ECI – at preferential rate.

In addition, the two establishments will hold workshops to introduce companies registered at Masdar City to trade and financial tools offered by ECI, educating these businesses about the importance of trade credit insurance. Both institutions share a common goal to make sure these companies stay informed and updated about the solutions that can further advance their growth.

The UAE launched the Energy Strategy 2050 in January 2017, allocating over AED600 billion to meet its goal of increasing the contribution of clean energy sources in the total capacity mix to 50% (44% renewable and 6% nuclear) by 2050. The strategy aims to reduce carbon footprint of power generation by 70%, thus saving AED700 billion by 2050.

Read the article online at: https://www.energyglobal.com/special-reports/29012021/eci-and-masdar-work-towards-developing-renewable-energy-in-the-uae/