Vice President Commercial

BYD wins Masdar's 18.775 GWh battery storage deal that was supposed to go to CATL. In January 2025, CATL announced a 19 GWh storage partnership with Masdar valued at US$6 billion for the Round-The-Clock solar project in Abu Dhabi, widely reported as a landmark agreement that would anchor the Chinese battery giant's position in the Middle East's rapidly expanding energy storage market. By mid-2026, the actual supply contracts for that same project had been split between BYD, which won 11.275 GWh, and Sungrow, which secured 7.5 GWh in May. Together they account for 18.775 GWh, nearly the entire planned storage capacity of a project that features a 5.2 GW solar PV plant paired with 19 GWh of battery storage. CATL, despite holding more than 40% of the global EV battery market in the first five months of 2026, is not among the suppliers. The outcome illustrates two concurrent trends in the global battery industry. First, the energy storage market has become the primary growth arena for Chinese battery manufacturers facing margin compression and slowing demand growth in EV applications. Second, competition within that arena has intensified sufficiently that even a company with CATL's scale and technical depth can lose a large, high-profile contract to competitors who move more aggressively on price and regional market development. Chinese BESS integrators held a 76% share of the global energy storage market in 2025 according to Wood Mackenzie. BYD and Sungrow together captured 87% of the Middle Eastern market in the same year. What the Masdar contract result makes visible is that market share dominance at the regional level does not protect any individual supplier from displacement. Why energy storage has become the priority. CATL's gross margins for EV batteries fell approximately two percentage points to 20.6% in the first half of 2025, a decline the company attributed to price competition in the global EV market following subsidy reductions in major economies. Its energy storage business recorded a gross margin of nearly 24% over the same period. That spread of roughly three percentage points is not dramatic in absolute terms, but in an industry where the primary competitive lever is cost and scale, maintaining higher margins in a growing market while the core EV segment is under pressure makes energy storage a structural priority rather than a supplementary revenue line. This pattern applies across the Chinese battery supplier landscape. BYD, which simultaneously operates one of the world's largest EV businesses, has pursued energy storage aggressively enough to top the Q1 2026 global BESS shipment rankings compiled by InfoLink Consulting, the first time it has held that position. CATL dropped to eighth in the same ranking. Tesla, the US market's dominant BESS player through its Megapack product, fell to fourth. Seven of the top ten positions are now held by Chinese integrators, a concentration that reflects manufacturing cost advantages, vertical integration across cell chemistry and pack design, and the scale of China's domestic energy storage build-out providing a volume base that overseas competitors cannot match from their home markets alone. The price dynamic and its regional limits. The competitive price pressure that shifted the Masdar contract away from CATL is not specific to Abu Dhabi. BESS margins in the Middle East have declined from their historical levels as Chinese suppliers have competed more aggressively for the region's large-scale tender pipeline. Lucas Zhang Liutong of WaterRock Energy Economics characterised the decline as material but suggested that further significant drops are unlikely, a view that reflects both the physical cost floor set by battery cell prices and the recognition that suppliers accepting contracts at unsustainable margins create downstream delivery and warranty risks that sophisticated project developers like Masdar are equipped to assess. The Middle East's energy storage pipeline justifies the competitive intensity. The RTC project is described by the Emirates Water and Electricity Company as the world's first large-scale combined solar and battery storage facility, and its scale, with 19 GWh paired with 5.2 GW of solar, represents a design template that the UAE, Saudi Arabia, and other Gulf states are likely to replicate as they pursue their respective energy diversification strategies. Winning or losing contracts at this scale has consequences for reference project portfolios, local market relationships, and future tender evaluations that extend beyond the immediate contract margin. The localisation requirement. Yale Zhang of Automotive Foresight identified cost as the decisive factor in the BYD and Sungrow wins, noting that energy storage systems require lower energy density than EV batteries but higher safety within budget constraints, and that even affluent Middle Eastern buyers will manage procurement costs rigorously. But the cost dimension is not purely about cell price per kilowatt-hour. Tender evaluations in the Gulf increasingly weight local assembly, technology transfer, and workforce training requirements, as UAE industrial policy under national development frameworks creates preferences for suppliers who commit to in-country value creation. This creates a secondary competitive dynamic within what appears to be a purely price-driven market. Chinese BESS manufacturers investing in local assembly facilities and training programmes can differentiate themselves in tender scoring in ways that pure price competition does not capture. The companies positioned to do this are those with the balance sheet strength to accept the capital cost of establishing regional manufacturing or assembly presence in advance of securing contracts, rather than as a condition attached to individual awards. For the top-tier Chinese suppliers, the investment case for Gulf localisation is becoming more compelling as the region's storage procurement pipeline grows and the preference signals from procuring authorities become more explicit. The broader demand driver behind all of this is structural. Battery energy storage demand has surged in response to energy price volatility attributable to geopolitical disruptions and the rapid growth of AI data centre power consumption. These drivers are not transient: the TEN-T corridor infrastructure requirements, global renewable energy targets, and data centre buildout trajectories all point to a sustained decade-scale expansion in grid-scale storage procurement. The Chinese BESS industry's 76% global market share and the distribution of that share increasingly toward BYD and Sungrow at the expense of CATL in at least one significant contract suggest that the competitive dynamics within the Chinese supplier group are becoming as consequential to the market's evolution as the competition between Chinese suppliers collectively and the rest of the world.

Masdar and EPCG launch first solar energy projects in Montenegro 28 July 2026 14:38 Abu Dhabi - Tivat - Montenegro (Al-Ittihad) Abu Dhabi Future Energy Company (Masdar) and the Montenegro national electricity company (EPCG) announced the activation of their strategic partnership by signing agreements to develop two solar power projects with a capacity of 150 megawatts and study the development of a pumped storage hydropower plant with a capacity exceeding 400 megawatts. The agreements include the development of the first projects under a partnership established between Masdar and EPCG in April 2026, with a 50% stake each, which aims to develop a portfolio of renewable energy projects with a capacity of up to 2 gigawatts in Montenegro, contributing to meeting the growing local demand for electricity, enhancing energy security, and supporting future electricity exports to neighboring European markets. The agreements include the development of the 115-megawatt photovoltaic solar project "Stedim" and the 35-megawatt photovoltaic solar project "Krupac." Masdar and EPCG also signed a framework agreement to explore opportunities for joint development of pumped storage hydropower projects with a capacity exceeding 400 megawatts. Through its ability to store electrical energy during periods of surplus production and supply it to the grid when needed, pumped storage hydropower technology will increase the reliance on renewable energy sources in Montenegro, in addition to enhancing the flexibility, stability, and adaptability of the electricity grid to various operating conditions. The agreements were signed in the city of Tivat, Republic of Montenegro, in the presence of His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Chairman of the Board of Directors of Masdar, and His Excellency Admir Shahmanović, Minister of Energy and Mining of Montenegro, by Milutin Đukanović, Chairman of the Board of Directors of EPCG, Zdravko Dragaš, CEO of EPCG, and Hussein Al Meer, Executive Director of Global Offshore Wind Energy and UK Business at Masdar. Energy supplies On this occasion, His Excellency Dr. Sultan bin Ahmed Al Jaber said that, in line with the leadership's vision and directives to build qualitative partnerships and enhance international cooperation to ensure energy security, these agreements represent an important step towards accelerating the deployment of clean energy solutions in the friendly Republic of Montenegro, as these projects provide reliable and cost-effective energy supplies, especially with the growing demand for energy in Europe and the need to increase its supplies. These agreements underscore the pivotal role that Masdar plays in leveraging its global expertise, utilizing the latest technologies, and implementing long-term investments in markets with promising growth opportunities. His Excellency stated that Masdar, in cooperation with its partners, will work to develop advanced, high-quality energy infrastructure in Montenegro, contributing to enhancing energy security and laying solid foundations for sustainable economic growth. For his part, His Excellency Admir Shahmanović said that Montenegro has significant renewable energy resources, and today we are paving the way to turn these potentials into tangible projects. This partnership, three months after its establishment, has resulted in the launch of the first planned projects, which reflects the strong cooperation and the level of trust that Montenegro has placed in one of the world's leading clean energy companies. He added that through this partnership, new capacities in the energy sector will be built, contributing to providing safer sources that support development efforts in Montenegro and enhance its competitiveness. Today we launch investments worth hundreds of millions of euros, which will enhance energy security, provide job opportunities and new development projects for our citizens, ensure more stable energy supplies for the economic sector, and move forward in increasing reliance on clean energy to become one of Montenegro's most important exports. Strategic partnership For his part, Mohamed Jameel Al Ramahi, CEO of Masdar, said that these agreements represent an important step towards expanding Masdar's activities in Montenegro and support the strategic partnership with EPCG. By combining Masdar's global expertise in developing clean energy solutions, its investment capabilities, and its proven track record in implementing large-scale energy projects, with EPCG's market leadership and extensive experience in operating projects, we are together establishing a close partnership that ensures long-term growth. He explained that the goal of this cooperation is to diversify the electricity generation mix in Montenegro, enhance energy security, improve the stability and resilience of the energy system, while achieving sustainable economic value for Montenegro and the region as a whole. He added: The Balkans, Southeast Europe, and Central Europe are key markets for Masdar's business growth and contribute to achieving our goal of raising the capacity of our global renewable energy project portfolio to 100 gigawatts by 2030. He expressed his aspiration to expand cooperation with EPCG and the Government of Montenegro to implement qualitative projects with tangible impact, supporting Montenegro's development ambitions and enhancing its position as a leading energy hub in the region. For his part, Milutin Đukanović said that the partnership with Masdar represents an important step towards realizing our vision for a modern and sustainable energy sector, as it will contribute to laying the foundations for the development of new renewable energy projects, alongside enhancing EPCG's expertise and developing its business system. The signed agreements to develop the "Krupac" and "Stedim" solar projects, along with a framework agreement in the hydropower sector, constitute an important step towards establishing a joint portfolio between EPCG and Masdar and expanding its scope in the next phase, stressing that this cooperation will create sustainable long-term value for our company and the Republic of Montenegro. For his part, Zdravko Dragaš said that the partnership with Masdar represents a new milestone in EPCG's growth journey and its investment plans in the clean energy field. By combining global expertise with local market knowledge, we provide the necessary ingredients to develop qualitative projects that increase electricity generation from renewable sources. The signing of the three agreements today marks the starting point for a long-term strategic partnership, including the development of a joint energy projects portfolio and working to grow it through new investments in the coming years. He looks forward to this partnership accelerating the development of the energy system, enhancing the company's competitiveness, and creating new opportunities that support economic growth in Montenegro. Clean energy The partnership between Masdar and EPCG focuses on exploring opportunities to develop utility-scale clean energy projects in Montenegro, relying on multiple technologies including photovoltaic solar, wind, hydropower, pumped storage hydropower, battery energy storage systems, and hybrid solutions. These projects aim to meet the growing local electricity demand in Montenegro, enable it to export clean electricity to the Western Balkans and Southern Europe, and benefit from the existing submarine electrical interconnection with Italy to transmit electricity on a wider scale in the European market. Masdar has been active in Montenegro since 2018 through its investment in the 72-megawatt Krnovo wind farm, which is the largest operational wind farm in the country. Europe represents a key strategic market for Masdar as it seeks to raise the total capacity of its global renewable energy project portfolio to 100 gigawatts by 2030. Terna Energy, which Masdar acquired in 2025, is developing the Amfilochia project in Greece with a capacity of 680 megawatts, one of the largest pumped storage hydropower projects in Europe, providing technical expertise and specialized knowledge for developing such projects in Montenegro. Masdar has a diverse global project portfolio with a generation capacity exceeding 65 gigawatts, spread across many of the fastest-growing renewable energy markets, and includes various renewable energy technologies, including solar, onshore and offshore wind, battery energy storage systems, and hybrid solutions. Masdar continues to expand its global activities through well-studied plans targeting important markets, contributing to providing reliable, cost-competitive clean energy that meets the accelerating global demand for electricity.

Masdar and EPCG advance Montenegro renewables partnership. By CEP Staff - 28 July 2026 in News Masdar and Elektroprivreda Crne Gore (EPCG) have signed agreements to jointly develop 150 MW of solar PV projects in Montenegro and explore more than 400 MW of pumped hydro energy storage. Not already a subscriber? As a subscriber, you have reached this page because you are not logged in.