Abu Dhabi National Energy Company (Taqa) together with Emirates Water and Electricity Company (Ewec) announced the financial closing of the ~ AED 3.6 billion ($980 million) 1 GW Al Dhafra Power Plant which will provide power to data centre projects and advance the UAE National Strategy for Artificial Intelligence 2031.
The project is primarily funded ~85 per cent through debt financing from both local and international banks, including, Standard
Chartered Bank, Abu Dhabi Commercial Bank, Agricultural Bank of China, Doha
Bank, First Abu Dhabi Bank, HSBC, ICBC, KFW, National Bank of Kuwait, RAK bank,
Woori Bank, Abu Dhabi Islamic Bank PJSC, Boubyan Bank and Ajman Bank. Construction
of the Al Dhafra Gas Turbine project has already begun and is being developed
by Taqa at an accelerated and unprecedented pace.
Taqa owns 100 per cent of both the
project company and the operation and maintenance (O&M) company. It will
build, own and operate this 1 GW plant.
The financial close of this
critical infrastructure project follows the announcement of Taqa signing a 24-year
Power Purchase Agreement (PPA) with Ewec in April.
Dr Frank Possmeier, Chief Investment
Officer, Taqa’s Generation business, said: “AI represents a major opportunity
for both economic growth and increased energy demand. Meeting this demand
requires an agile, secure, and sustainable energy mix that prioritises
decarbonisation and flexibility. The Al Dhafra Gas Turbine Power Plant
exemplifies this approach. TaqA has taken the project from inception to
development, through to beginning construction, and now to financial close at
record speed —demonstrating our agility and commitment to supporting the rapid
growth in energy needs driven by AI data centres. The plant also plays a
crucial role in providing flexible baseload power that enables greater
integration of renewable energy into the system. We are proud to celebrate this
milestone, and landmark projects like this reinforce Taqa’s position as a
market leader and partner of choice for reliable, sustainable power
generation.”
Mohamed Almarzooqi, Chief Asset
Development & Management Officer of Ewec, said: “The financial close of the
Al Dhafra Power Plant marks a significant milestone in our mission to secure
the UAE’s energy future through innovation and strategic collaboration. As a
key enabler of the UAE National Strategy for Artificial Intelligence 2031, the
facility provides the critical energy infrastructure required to power the next
generation of data centres and strengthen the nation’s position as a global
leader. Furthermore, the flexible baseload power that will be delivered by this
plant complements our growing pipeline of utility-scale renewables and battery
storage, providing the essential transitional capacity needed to integrate
significantly higher levels of clean energy into the grid. Ewec remains
committed to pioneering a modernised, decarbonised energy system that meets the
intensive 24/7 requirements of the digital economy while accelerating our
transition toward a sustainable, carbon-neutral future. We look forward to
working closely with Taqa through the delivery and operations phases to ensure
Al Dhafra supports both national energy security and the rapid growth of the
UAE’s digital landscape.”
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.
Importantly, Al Dhafra plant as
part of the announced investment of AED 36 billion in energy supply
infrastructure in Abu Dhabi by Ewec, Taqa, and Masdar, will support Masdar’s
world-first project that will enable renewable energy to be dispatched 24 hours
a day, seven days a week, 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 and will
also provide power to AI data centres.
Through Taqa’s own growth aspirations and its 43 per cent shareholding in Masdar’s renewable energy company, it is targeting to grow to 150 GW of gross power generation by 2030 and Taqa is on track to achieve this growth ambition. -TradeArabia News Service
