Taqa and EWEC sign power purchase agreement for 1GW of new advanced generation capacity

04/04/2025 09:31 AST

Abu Dhabi National Energy Company PJSC (Taqa), one of the largest listed integrated utility companies in Europe, the Middle East and Africa, together with Emirates Water and Electricity Company (EWEC), a leading company in the integrated planning, purchasing, supply and system despatch services of water and electricity across the UAE, on Thursday announced the development and implementation of new energy infrastructure projects to directly advance the UAE National Strategy for Artificial Intelligence 2031, and UAE Net Zero by 2050 initiative.

The collaboration includes Taqa signing a 24-year power purchase agreement (PPA) with EWEC to build, own, and operate the 1-gigawatt (GW) Al Dhafra open-cycle gas turbine (OCGT) project in the UAE. With 100 per cent ownership, Taqa is leading the OCGT project and will undertake the operation and maintenance (O&M) of the plant. In addition, Taqa Transmission, part of Taqa Group, will develop advanced power grid infrastructure to integrate the additional generation capacity to new sources of energy demand, enabling access to reliable power with a low carbon footprint.

The projects will support the recently announced EWEC and Masdar world-first project that will enable renewable energy to be dispatched 24/7, reaffirming the UAE's position as a global pioneer in renewable energy deployment and low-carbon infrastructure. Delivering up to 1GW of baseload power every day generated from renewable energy, it will be the largest combined solar and battery energy storage system (BESS) in the world.

The collaboration between EWEC, Taqa, and Masdar, will drive investment of around Dh36 billion in energy supply infrastructure in Abu Dhabi with around 75 per cent of that to be invested in renewable and conventional power generation. The remaining 25 per cent will be invested in grid infrastructure, which will be added to the regulated asset base and will receive the regulated return.

Jasim Thabet, Group CEO and Managing Director of Taqa and Vice Chairman of Masdar said: "Providing reliable low-carbon power plays an important role in enabling the global energy transition. Through our expertise in power generation and transmission, and as the largest shareholder in Masdar, Taqa plays a central role in advancing clean energy solutions in the UAE, and we remain committed to ensuring reliable, low-carbon power at all times. As a champion of low-carbon power and water, we are proud to be a part of these world-class projects alongside our partner EWEC."

Ahmed Ali Alshamsi, Chief Executive Officer of EWEC, said: "EWEC is pleased to partner with Taqa on transformative initiatives that will not only power the UAE's AI ambitions but also accelerate the nation's energy transition. By creating a future-ready energy framework that integrates next-generation renewable energy technologies and advanced transmission solutions, this collaboration is setting a new global benchmark for sustainable energy systems that balances sustainability with operational excellence. As the UAE transitions into an AI-powered future, we are creating the foundation for a future where advanced technologies can flourish, while meeting the country's forward-thinking environmental and economic goals."

EWEC has achieved a transformative milestone in Abu Dhabi's energy sector, now supplying more than 55 per cent of the emirate's power demand through renewable and clean energy sources. Additionally, more than 92 per cent of water production will be supplied through state-of-the-art reverse osmosis technology, reducing water production emissions from 16 kilogrammes per cubic meter (kg/m³) in 2021 to 1 kg/m³ by 2031. These advancements reinforce Abu Dhabi's position as a global leader in sustainable utility operations.

Khaleej Times