Taqa focuses on renewable energy, particularly solar photovoltaic, for more than 30% of the power generation portfolio by 2030.
Abu Dhabi National Energy Company (Taqa), announced on Wednesday its 2030 vision for sustainable and profitable growth. The strategic plan places at its core the global acceleration of the energy transition, and Taqa’s ambition to become a champion for low carbon power and water.
Taqa’s new strategy builds upon its identity, post the Taqa and Abu Dhabi Power Corporation (ADPower) transaction in July 2020, to focus on being a regionally leading fully integrated utility.
Following the recent decision to allow foreign investors to own up to 49 per cent of Taqa’s issued shares, the company still expects to release a follow-on public offering, subject to market conditions and shareholder approval.
In power generation, the company plans to increase gross power capacity from 18 GW to 30 GW in the UAE, and adding up to 15 GW internationally. The company also envisages expanding highly efficient reverse osmosis technologies to make up two-thirds of its desalination capacity by 2030 with 200 MIGD already under construction.
Taqa is also working to develop and publish greenhouse gas emission reduction targets.
As part of the plan, the company will focus on renewable energy - particularly solar photovoltaic (PV) - to comprise more than 30 per cent of the power generation portfolio by 2030, up from the current 5 per cent.
In transmission and distribution, Taqa plans to execute substantial UAE-based infrastructure and networks growth projects and invest an additional Dhs40 billion by 2030 to grow its UAE Regulated Asset Base.
The Group will continue to focus on operational excellence, optimisation and digitisation across the entire value chain to become a role-model for high-performing and efficient transmission and distribution alongside improving the service for its customers.
In addition, the plan aims to strengthen the position of Taqa’s operating company, Abu Dhabi Energy Services (ADES), and grow new services in demand-side management, enabling public and private entities to realise energy savings targets.
In oil and gas sector, Taqa’s plan will focus on commercially viable opportunities to reduce exposure to the hydrocarbon sector, continue to pursue top quartile operations performance, and highly selective capital allocation focusing on portfolio rationalisation for value.
Mohamed Hassan Al Suwaidi, Chairman of Taqa, commented: “Taqa has the support of our shareholders for this new strategy and is on its way to become the recognized low carbon power and water champion from Abu Dhabi, and this strategy sets out how the company will achieve this ambition. As we emerge from the pandemic, around the world there will be an increasing focus on the need for clean, reliable and sustainable sources of power and water.
Taqa is uniquely positioned to use its platform to play a key part in meeting Abu Dhabi’s own ambitions in this space, as well as taking its expertise to international markets where it can add value.
Over and above the current strategic plan, Taqa will continue to capitalise on its unique position as UAE’s utilities champion and leverage the UAE’s strong relationships to drive power solutions across the region and globally, as well as consolidate its position within the UAE to deliver on national objectives.”
Jasim Husain Thabet, Taqa’s Group Chief Executive Officer and Managing Director, commented: “Taqa will become a champion for low carbon power and water. This strategy sets out how we are going to deliver on this promise and our vision for the future. We will build on our strengths and use the unique position we have in Abu Dhabi as a platform for growth in the UAE and internationally. We will expand our portfolio of renewables and highly efficient water desalination, drive efficiency in our networks and distribution business and invest in growing the UAE Regulated Asset Base.
As one of the largest integrated utilities in the region, we are well placed to be at the heart of meeting the accelerating demand for low carbon power and water. We have a strong pipeline of existing projects and are ready to seize further opportunities in a way that benefits our stakeholders - from shareholders to employees and customers.”
Since the Taqa-ADPower transaction in July 2020, the company received upgrades to its issuer ratings to Aa3 from A3 and a standalone rating of baa1 (from Moody’s) and AA- from A and standalone rating to bbb+ (from Fitch).