Taqa and Dubal buy EGA energy assets for nearly $2bn

Abu Dhabi National Energy Company (Taqa) and Dubal Holding have agreed to acquire Emirates Global Aluminium’s power and water generation assets in Al Taweelah for AED7 billion ($1.9 billion).

The plant, located in Khalifa Industrial Zone Abu Dhabi (Kizad), will be owned and operated through an equally owned joint venture, Taqa said in a statement to the Abu Dhabi Securities Exchange on Thursday.

The Al Taweelah power plant, the third-largest in Abu Dhabi, generates 3 gigawatts and has a desalination capacity of 6.3 million imperial gallons per day.

Dubal Holding is the investment arm of the Investment Corporation of Dubai, the sovereign wealth fund for the Dubai government.

State-run Abu Dhabi Power Corporation owns 90 percent of Taqa. Mubadala Investment Company and ICD equally own EGA.

The Taqa-Dubai Holding joint venture also signed a power purchase agreement with the Abu Dhabi government-owned Emirates Water and Electricity Company, which will be the principal offtaker from the Al Taweelah plant until 2049.

The move will provide a flexible power supply, supporting the continued integration of renewables and clean energy into the Abu Dhabi grid, the statement said.

Furthermore, Taqa Transmission, a subsidiary of Taqa, will acquire EGA’s electricity transmission assets, with interconnection capacity from the main grid to EGA’s sites slated to rise from 640 to 3,360 megavolt-amperes to enhance clean energy supply from the grid by 2027.

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Emirates Water and Electricity Company is accelerating the decarbonisation of Abu Dhabi’s energy sector and forecasts more than 18 GW of photovoltaic solar to be in operation by 2035.

The transactions are expected to close in 2026 and are subject to regulatory approvals.

Shares of Taqa closed 1.2 percent higher at AED3.47 on the Abu Dhabi Securities Exchange on Wednesday. The stock is up 20 percent over the past year.