Deals signed to expand clean, renewable energy in Abu Dhabi

Emirates Global Aluminium (EGA), Abu Dhabi National Energy Company (Taqa), Dubal Holding and Emirates Water and Electricity Company (EWEC) have signed a series of agreements to decarbonise aluminium production and expand renewable and clean energy development in Abu Dhabi.

The initiative supports the growth strategies of Taqa and Dubal Holding, places EGA among the global aluminium industry’s leaders in the drive to net zero by 2050, strengthens EWEC’s optimisation of new solar power generation and enhances overall power generation efficiency in the Emirate.

The agreements were signed by senior executives from the four entities in the presence of Dr Abdulla Humaid Al Jarwan, Chairman of the Abu Dhabi Department of Energy, Homaid Al Shimmari, Chairman of Emirates Global Aluminium, and Jasim Husain Thabet, Group Chief Executive Officer and Managing Director of Taqa.

Taqa and Dubal Holding will acquire EGA’s power and water generation assets in Al Taweelah for $1.9 billion (around Dhs7 billion). The plant, with a generation capacity of 3.1GW and 6.25 million imperial gallons per day of desalination, uses high-efficiency combined-cycle gas turbines and reverse osmosis technology. The assets will be transferred to a joint venture equally owned by Taqa and Dubal Holding, with operations managed by a new company jointly owned by Taqa and EGA.

The joint venture signed a Power Purchase Agreement with EWEC for the supply of power from Al Taweelah until 2049. The plant will provide flexible capacity to support further integration of renewable and clean energy into the Abu Dhabi grid.

Taqa Transmission will acquire EGA’s transmission assets and is upgrading interconnection capacity from 640 to 3,360MVA to enable greater clean energy flows to EGA’s sites, with completion expected in 2027.

EGA also signed long-term electricity supply agreements with EWEC and Taqa Distribution, becoming the largest single electricity customer on the Abu Dhabi grid. The agreements provide 23TWh of electricity annually for 24 years, with a rising share from renewable and clean energy sources as EWEC brings new solar generation online.

EWEC forecasts more than 18GW of solar PV capacity by 2035 and projects energy-sector CO2 emissions will fall by around fifty per cent by the mid-2030s. EGA expects to increase production of its CelestiAL solar aluminium and MinimAL low-carbon aluminium, potentially reaching nearly half of total primary aluminium output by the end of 2028, depending on demand.

Production of CelestiAL and MinimAL will begin increasing from the fourth quarter of 2025 as EGA gains access to additional clean energy certificates from existing solar and nuclear generation assets.

Adding EGA’s generation capacity to the grid will also improve fleet efficiency by providing greater flexibility in electricity despatch, reducing gas consumption per unit of electricity generated and contributing to Taqa and EWEC’s emissions-reduction targets.

EGA and EWEC will share the financial benefits arising directly from the initiative. By 2035, the project is expected to reduce annual greenhouse gas emissions by 3.5 million tonnes, more than three per cent of Abu Dhabi’s current total emissions.

The transaction is subject to regulatory approvals and customary closing conditions and is expected to complete in the new year.

Dr. Abdulla Humaid Al Jarwan, Chairman of the Abu Dhabi Department of Energy, said, “These agreements show Abu Dhabi’s approach in practice, delivering reliable and sustainable energy to support industrial growth while reducing carbon emissions.” Abdulnasser Bin Kalban, Chief Executive Officer of EGA, said, “This initiative is one of the largest decarbonisation projects in the global aluminium sector, significantly increasing the availability of low-carbon premium aluminium for customers and reinforcing EGA’s position as a competitive and sustainable producer.”

Jasim Husain Thabet, Group Chief Executive Officer and Managing Director of Taqa, said, “The agreements highlight the strength of Taqa’s integrated model and enhance our portfolio, supporting our 2030 ambition of reaching 150GW of global generation capacity while advancing decarbonisation.”

Ahmad Hamad Bin Fahad, Chief Executive Officer of DUBAL Holding, said, “This step advances sustainable industrial growth, strengthens the UAE’s clean energy transition and supports national net-zero goals.”

Ahmed Ali Alshamsi, Chief Executive Officer of EWEC, said, “This partnership sets a new benchmark for sustainable industrial development, demonstrating how long-term collaboration can deliver deep emissions reductions and accelerate the decarbonisation of energy-intensive manufacturing.”

Meanwhile Abu Dhabi National Energy Company (Taqa) today announced its financial results for the nine-month period ending 30th September, 2025, reporting Group revenues of Dhs42.7 billion, a 2.9 per cent increase compared to the same period last year, primarily driven by higher pass-through revenue in the Transmission and Distribution segment. The company posted Dhs16.0 billion in EBITDA, with net income reaching Dhs6.1 billion for the nine-month period.

WAM