Emirates Development Bank (EDB) has announced a AED100m ($27m) financing agreement with Dubai-based renewable energy firm Yellow Door Energy (YDE) to support the development and operation of more than 60 solar photovoltaic (PV) plants across the UAE.

EDB’s financing will expand YDE’s portfolio of solar PV systems, enhancing its capacity to lease solar power plants through solar leases, also known as power-purchase agreements (PPAs), tailored for industrial and commercial enterprises, the firms said in a 12 November statement.

YDE will offer leasing opportunities to major industrial players in the UAE, which will benefit from long-term access to clean electricity, significant energy cost savings and promotion of sustainable energy usage across the UAE, the firms added.

The collaboration between EDB and YDE aligns with the UAE's net-zero ambitions and the UAE Energy Strategy 2050, which prioritises the diversification of energy sources.

EDB plans to provide AED30bn in financing to support five priority sectors, including renewables.

Since the launch of its strategy in 2021, EDB has provided a cumulative total of AED12.97bn in financing, including more than AED1.78bn to empower the renewable energy sector.

In 2022, the Dubai-based distributed solar company closed a $400m equity transaction to help fund over $1bn-worth of projects in the Middle East and Africa.

The funding was largely provided by the firm’s controlling shareholder, London-headquartered Actis.

YDE focuses on building, financing and operating distributed solar plants across the region. The PPAs for these projects typically range between 10 and 20 years.

In addition to the UAE, YDE maintains assets in Saudi Arabia, Bahrain, Jordan, Pakistan, South Africa and Turkiye.