Taqa, Uzbekistan to explore power projects, investment opportunities

Abu Dhabi National Energy Company (TAQA) has announced a collaboration with the Government of Uzbekistan to explore strategic opportunities for investment in Uzbekistan’s power sector.

These opportunities include new and existing power plants as well as associated power infrastructure and collectively could be worth more than $3 billion.

A strategic framework agreement and an implementation agreement were signed by Azim Akhmedkhadjaev, First Deputy Minister of Energy of Uzbekistan; Sarvar Khamidov, Deputy Minister of Investment of Uzbekistan, Industry and Trade; and Jasim Husain Thabet, Taqa’s Group Chief Executive Officer and Managing Director.

The implementation agreement covers proposals for a greenfield combined cycle power plant with a capacity of approximately 1.5 GW. The new project is set to be developed adjacent to the existing Talimarjan power complex where TAQA has already announced plans to invest in privatising two gas-fired power plants.

The new partnership is expected to cover the design, financing, engineering, procurement, commissioning, testing, ownership and operation of the power plant by TAQA.

The agreements are also looking at opportunities to invest in existing and further greenfield gas-fired power generation plants with a combined capacity of more than 3GW along with electricity transmission and distribution infrastructure in Uzbekistan.

This strategic collaboration between TAQA and the Government of Uzbekistan is another significant milestone in TAQA’s international growth strategy.

These agreements open the door for TAQA to bring its operation and maintenance expertise to Uzbekistan to support new and existing power generation projects.

The company will also support the Uzbekistan Government’s reform process for the sector. In transmission and distribution, the company will bring in international best practice infrastructure development and operation to help the Uzbekistan Government achieve substantial improvements in transmission and distribution network performance, network asset modernisation, customer experience, and collection services.

Khamidov commented, “The Uzbekistan Government is pleased to collaborate with our partners TAQA once again on these important power and infrastructure projects. This partnership and the pipeline of projects builds on the existing opportunities between our countries and our shared interests to invest and support a sustainable and reliable power sector.”

Thabet said, “TAQA welcomes the opportunity to leverage its extensive global expertise as part of our collaboration with the Government of Uzbekistan. Working together we can accelerate the sustainable development of the country’s power sector and build on the strong relationship between our two countries.

In addition to helping modernise Uzbekistan’s network and generation sector capabilities, working closely with the country’s leading ministerial agencies will allow us to expand our international portfolio, strengthening our position as a global utilities leader.”

At the same signing ceremony, Abu Dhabi Future Energy Company, Masdar, a joint venture owned by TAQA, ADNOC and Mubadala signed a joint development agreement (JDA) with Uzbekistan’s Ministry of Energy (MoE) and the Ministry of Investments, Industry and Trade (MIIT) to develop over 2 gigawatts of solar and wind projects and 500 megawatt-hours of battery energy storage at multiple sites across the country.

Meanwhile Abu Dhabi National Energy Company (Taqa) reported a very strong first quarter for the period ending March 31, announcing a net income (Taqa share) of Dhs11.6 billion, an increase of Dh9.6 billion, mainly driven by a one-off gain recognised on the acquisition of a 5 per cent shareholding in Adnoc Gas.

It also announced group revenues of Dhs13.1 billion, 6 per cent higher than the prior-year period, primarily due to higher pass-through bulk supply tariffs and transmission use of the system within the Transmission and Distribution segment and Adjusted Ebitda of Dhs5.3 billion.

The company also announced a capital expenditure of Dhs1.1 billion, 26 per cent higher than prior year; Free cash flow generation was Dhs4.3 billion, 31 per cent higher compared to the previous year; and gross debt of Dhs59.8 billion, down from Dhs61.7 billion at the end of 2022.

Speaking on the occasion, Jasim Husain Thabet, Taqa’s Group Chief Executive Officer and Managing Director, said, “Taqa Group has closed a positive first quarter for 2023 with a significant boost to our net income from our new stake in Adnoc Gas. Outside of this, the company has made strong progress in delivering on our growth strategy alongside a steady financial performance.