Good morning, nice people. It is a balanced read this week, with investment, debt, and renewables updates from all across the region. But first, an update on Spain’s grid collapse…

THE BIG STORY ABROAD THIS WEEK- Searching for culprits in Iberia’s mass blackout: A sudden collapse in Spain’s solar power output appears to have triggered the massive blackout across Spain and Portugal last Monday. Data from Spanish grid operator Red Electrica shows solar generation dropped from around 18 GW to under 5 GW in an hour by noon, accounting for most of the overall power drop. Power has been gradually restored, but it remains unclear why this occurred or why it caused the entire system to collapse so rapidly. Spain has a total solar capacity of 32 GW.

What happened: The blackout hit Spain and Portugal on Monday, with Spain’s grid losing the equivalent of 60% of national demand. The sharp drop disrupted the grid’s frequency, triggering a chain reaction that severed the Spanish-Portugal-French interconnection, collapsing Spain’s power system and dragging Portugal’s grid down with it. Parts of France also experienced brief outages.

But it’s not the renewables — it’s the grid: The blackout is a reminder that many power grids in developed countries are decades old, with some built in the 1950s, and are overdue for upgrades. Global investments in new solar capacity edged USD 500 bn last year, and only USD 400 bn was directed toward grid upgrades — a mismatch that threatens system stability as electricity demand rises. Without parallel investment in storage and transmission, aging grids will struggle to handle the load from renewables.

The story made headlines in the international press: Reuters | | Associated Press | Bloomberg | Financial Times | Wall Street JournalCNN | New York Times | | BBC | The Guardian

WHAT WE’RE TRACKING REGIONALLY-

#1- Oman’s state-owned hydrogen company Hydrom kicked off the third round of bidding for its green hydrogen projects on Wednesday, according to its website. The bidding — managed by the state-owned Hydrom — is beginning with Requests for Quotes (RFQ) for a 300 sq km block of land based in Duqm.

Timeline: The bidding stipulates that each proposal covers at least 100 sq km, with the RFQ deadline slated for 31 October. Shortlisted bidders will then be invited to submit Requests for Proposals (RFP) by January 2026, and winning bids are expected to be announced by 2Q 2026.

Targeting a bigger pool of developers: The bidding round is designed to be flexible to attract more participation from smaller and mid-sized developers, with bidders given the freedom to define the footprint of their proposed project. The bidding also allows for proposals with phased developments and includes permission for selling any surplus from the projects’ renewable electricity. Hydrom is expecting bids from international, regional, and local renewable developers, financial partners, EPCs and hydrogen equipment providers, strategic off-takers and investors, and infrastructure developers.

Oman’s on a roll: Oman is targeting a national production capacity exceeding 1-1.25 mn tons of green hydrogen by 2030, and has recently inked three supply chain infrastructure agreements last month with the Netherlands.

#2- The Abu Dhabi Investment Authority (ADIA) was amongst a group of anchor investors backing Ather Energy’s USD 156.94 mn pre-IPO offering, AGBI reported on Tuesday. The India-based two-wheeler EV manufacturer also closed subscriptions for its IPO on Wednesday after securing some USD 286 mn in bids, surpassing the initial offer of some USD 202 mn. The company has reportedly raised a total of USD 352 mn, which it plans to use to build a third factory and invest in research and development.

Not ADIA’s first in India’s greens: ADIA invested INR 379.5 mn (AED 16.61 mn) in Indian solar cell manufacturer Premier Energies as an anchor investor ahead of its IPO last summer, acquiring a 4.5% stake in the company. ADIA and other anchor investors also bid for anchor shares worth some USD 1.10 bn as part of the USD 2.45 bn secondary offering of India’s Adani Group subsidiary Adani Enterprises in 2023 — then said to be earmarked to finance green hydrogen and transport projects.

REFRESHER- The size of Ather’s offering is significantly lower than initially planned after the company lowered its float size twice from the initially targeted USD 536 mn. The downsized IPO was largely due to a decreased appetite to sell from current investors.

ALSO FROM UAE- Dubai-based EMA Power is reportedly backing the sale of South Korea’s DL Energy with KRW 100 bn (c.USD 69 mn) as a subordinate equity investor, Korean news outlet Chosun Biz reported on Monday. The preferred bidder for the acquisition, IPM Asset Management, is looking to finalize a stock purchase agreement within 1H this year, with a KRW 1 tn (c.USD 692 mn) valuation for DL Energy. Woori Bank is the lead arranger for the acquisition’s financing.

About EMA Power: IDB Infrastructure Fund II and South Korea’s DL Energy established EMA Power to serve as a joint investment platform focused on Independent Power Plant projects in the region. The JV — managed by Bahrain’s ASMA Capital — was established in April 2016 with a total capital commitment of USD 200 mn, and now operates assets with a capacity totaling around 1.5 GW.

#3- Egypt advances electricity liberalization reform: The Egyptian Electricity Transmission Company (EETC) has finally become an independent electricity transmission system operator after separating from parent organization Egyptian Electricity Holding Company, according to an Electricity Ministry statement released on Tuesday. The move is part of a broader — and much delayed — plan to liberalize the electricity market by turning the state’s electricity companies into market regulators and opening the door for the private sector to both produce and buy electricity from each other.

Following the split, the EETC will exclusively manage electricity transmission and grid operations, providing non-discriminatory third-party access in exchange for a fee. The entity will also carry out network maintenance, set up high-voltage transmission projects, and regulate electricity trading rules, as well as international interconnections.

On the agenda for some time: Liberalizing the country’s electricity market has been on the government’s agenda since Egypt kicked off its economic reform program in 2016 and the passage of the Electricity Act, which aimed to transform the state from the sole market player to a market regulator while separating the activities of production, transmission, and distribution to boost private sector participation. The state’s electricity companies were given eight years to complete the transition to market regulators by 2023, but this was extended another two years to 2025 back in 2020 — and now appears to be working toward a 2026 deadline instead.

#4- Iraq’s National Team for Renewable Energy Projects has earmarked IQD 1 tn (c. USD 764 mn) to finance households’ micro solar power systems, the Iraqi News Agency reported on Sunday. The funding will support the addition of a combined 700 MW to the national grid as the government ramps up efforts to alleviate energy shortages.

There’s more: The Iraqi government is leading a similar push to decarbonize government buildings, with four tenders recently awarded to equip 136 government buildings with solar energy. The team has also invited four companies to carry out similar projects in 200 other government sites, with plans to send six more invitations by the end of 2025 to implement such projects in 540 buildings. The move is part of a project that Iraq launched earlier this year to convert almost 5k government buildings to solar power systems, targeting 543 ministries in its first phase, as well as public hospitals, schools, and government offices in Baghdad.

ICYMI- The Central Bank of Iraq (CBI) amended its renewable energy financing initiative earlier this month to streamline disbursements and tighten reporting requirements for loans supporting residential and project-based renewable energy installations.

#5- BYD overtakes Tesla in 1Q bottomline: Al Futtaim-backed BYD’s net income jumped to CNY 9.15 bn (c.USD 1.3 bn) in 1Q 2025, beating Tesla’s USD 409 mn over the same period, Bloomberg reported last week. The Chinese EV-maker’s sales rose 36% y-o-y to CNY 170.36 bn, with nearly 1 mn vehicles sold in the quarter, keeping it on track to hit its FY sales target of 5.5 mn units. Analysts expect Trump’s tariffs to have little impact on the company, as it does not sell passenger cars in the US market.

Regional ties and activities: The UAE’s Al Futtaim Family Office invested an undisclosed amount in BYD’s USD 5.6 bnshare sale last month, becoming a “strategic partner” to the Chinese giant. BYD is currently building a USD 1 bn EV and hybrid production plant in Turkey with an annual production capacity set at 150k units. BYD — through Al Futtaim — has also partnered with Saudi Arabia’s EVIQ to boost EV adoption in the Kingdom.

#6- Saudi Arabia’s renewables major Acwa Power is planning to invest up to ZAR 7 bn (c. USD 378 mn) in South Africa’s water and energy sectors over the next five years, Bloomberg reported last week, citing people familiar with the matter. Acwa has co-developed two operational solar facilities in the country’s Northern Cape Province — a 100 MW concentrated solar power (CSP) Redstone plant with a USD 724 mn investment ticket and a 50 MW, USD 517 mn Bokpoort CSP plant. The company is also developing a USD 800 mn, 442 MW DAO solar energy complex in the country’s Northern Cape Province, expected to come online by 2Q next year.

WHAT WE’RE TRACKING GLOBALLY-

#1- US + Ukraine finalize minerals agreement: Ukraine and the US inked an agreement that is set to give the latter access to untapped raw materials in the war-torn country, the Associated Press reports. The agreement — finalized after months of drama — represents a win for Ukraine which successfully negotiated down some of the US’ big demands, such as paying back about USD 350 bn in aid the US provided to Ukraine during its war effort.

A reconstruction fund: The agreement will establish a ‘reconstruction’ fund, with equal management rights for both the US and Ukraine, AP reports, citing Economy Minister Yulia Svyrydenko. Ukraine will contribute 50% of profits from its raw materials project to the fund, while the US will contribute cash and equipment including defense items. Profit from the fund would be fully invested in Ukraine for the first 10 years, after which it would be equally distributed between the participants.

There’s more: The agreement has an expanded scope, covering oil and natural gas along with critical minerals. Existing projects generating revenue for Ukraine, however, are out of scope, with the deal only covering investments and revenues from new projects. Ukraine also maintained ownership of the resources, and its officials have said their government will decide where and what to extract.

#2- Eni + UK take on CCS project: Italian energy giant Eni reached a financial close on the GBP 21.7 bn Liverpool Bay carbon capture and storage (CCS) project after securing necessary financing from the UK government, according to a press release published last week. The project involves establishing new and re-purposing existing infrastructure to transport carbon dioxide from industrial areas to depleted gas fields operated by Eni in Liverpool Bay. No investment ticket has been disclosed for the project, which falls under the company’s HyNet CCS project.

What’s next for Eni? The Italian energy player will form a separate division focused on CCS solutions, and is soliciting minority ownership stakes from several investors, Reuters reported last week, citing unnamed sources.

Is it worth the massive ticket? Some environmental activists have criticized the initiative, arguing that current CCS plans would merely “extend the life of planet-heating oil and gas production” instead of investing in other pressing areas, such as renewables and insulating homes nationwide, the BBC reported, citing statements from UK Greenpeace and Friends of Earth. Last October, the Institute for Energy Economics and Financial Analysis blasted UK plans, describing CCS as “costly, complex and risky with a history of underperformance and delays and calling for investing in tech “with proven decarbonization credentials” such as buildings insulation, renewables, EVs, and grid-enhancing projects.

#3- LME to list sustainably mined metals: The London Metal Exchange (LME) is looking to add a green premium on metals that are mined sustainably, citing strong market demand among buyers, according to a press release issued last week. LME is planning to debut green aluminum, copper, nickel, and zinc on the trading platform Metalshub, with plans to add more sustainably sourced metals and green futures contracts if there is sufficient demand.

#4- Germany’s RWE has halted its offshore wind projects in the US due to political challenges under the Trump administration, according to a letter to shareholders (pdf) sent last Friday by CEO Markus Krebber.The company also introduced stricter requirements for future investments in the US, but it said it remains generally positive about RWE’s onshore US projects in solar energy, battery storage, and onshore wind. RWE holds three offshore wind leases in the US off the coasts of New York, Louisiana, and California, and its current generation capacity in the country stands at 10 GW, with construction for a further 4 GW already secured.

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CIRCLE YOUR CALENDAR-

Oman will host the Oman Sustainability Week from Sunday, 11 May until Thursday, 15 May in Muscat. The exhibition, bringing together policymakers and stakeholders from the energy and sustainability sectors, will serve as a premier knowledge-sharing platform, where thought leaders will explore policies and strategies to advance Oman’s journey toward a net-zero future.

Saudi Arabia will host theInternational District Cooling Conference from Tuesday, 13 May until Wednesday, 14 May in Jeddah. The conference will spotlight district cooling solutions for the Kingdom, with a focus on policy, regulation, digital transformations, asset management, optimization, networking, and investment opportunities.

Saudi Arabia will host its first Green Energy Week from Wednesday, 14 May until Thursday, 15 May in Riyadh. Over 450 attendees, 50 speakers, and 15 exhibitors will come together to discuss solar PV, energy storage and green hydrogen.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

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