Abu Dhabi National Energy Company, better known as Taqa, has bought an additional stake in the Taweelah B Independent Power and Water Plant to increase its ownership in the project as part of its growth strategy.
The company completed the deal after BTU Power Company and its liquidators sold their entire stake in the project for $65 million, Taqa said on Friday in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.
Taqa acquired an additional 10 per cent stake in the owner of the plant, Taweelah Asia Power Company (Tapco), to increase its overall ownership in Tapco to 70 per cent.
It also entered into operations and maintenance (O&M) at the plant after buying a 25 per cent stake in Asia Gulf Power Service Company, the O&M contractor to Tapco, it said.
The Taweelah B plant has 2.2 gigawatts of gross installed power generation capacity and a gross installed water desalination capacity of 162 million imperial gallons a day.
“The transaction will help support Taqa’s commitment to deliver on its strategy of capturing additional growth, enhancing its O&M capabilities, and becoming a lead developer and operator in the region, including in the UAE, Ghana and Morocco,” the company said.
Taqa is one of the largest integrated utilities in the Europe, Middle East and Africa region, with operations across 11 countries.
It has significant investments in water desalination and power generation, transmission and distribution assets, as well as upstream and midstream oil and gas operations.
In the UAE, it supplies more than 90 per cent of Abu Dhabi’s power and water needs.
The company “has ambitious growth plans for our UAE generation business and these transactions reflect that ambition”, said Farid Al Awlaqi, Taqa group’s executive director of generation.
“Increasing our stake in Taweelah B, as well as growing our O&M capabilities, demonstrates tangible progress in the pursuit of our strategic ambitions to strengthen our position as an integrated low-carbon power and water champion.”
Taqa plans to invest Dh40 billion ($10.9 billion) in infrastructure development as it focuses on its push into renewable energy under its 2030 strategy.
It is teaming up with Adnoc Distribution, the UAE’s largest fuel and convenience retailer, to create a joint venture that will build and operate electric vehicle infrastructure in Abu Dhabi.
Taqa also acquired a 43 per cent controlling stake in Masdar’s renewables business, with Mubadala retaining a 33 per cent interest and Adnoc owning the remaining 24 per cent.
It has also entered into a partnership with Masdar in its new green hydrogen joint venture.
The company reported a third-quarter profit jump of about 60 per cent on higher oil prices.