TAQA to Focus on Renewable Energy, Unveils 2030 Strategy for Sustainable Growth

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TAQA announced to substantially increase its gross power and water desalination capacity in the UAE and internationally.

Abu Dhabi National Energy Company TAQA, one of the largest listed integrated utility companies in the region, announced today 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. As part of the plan, TAQA will drive efficiency from its existing assets while strengthening its development, operations and digital competencies.

Growth is expected through meeting increased power, water and network capacity needed in its home market of the UAE, as well as from selective opportunities internationally. TAQA’s business will be anchored in ESG principles and practices. As part of that commitment the company is working to develop and publish greenhouse gas emission reduction targets.

In addition, the company will remain focused on its financial strengths including protecting its stand-alone investment grade credit ratings and delivering on its recently announced dividend policy. This strong financial stewardship will complement the company’s ambitious and more focused growth strategy. Following the recent decision to allow foreign investors to own up to 49% of TAQA’s issued shares, the company still expects to release a follow-on public offering, subject to market conditions and shareholder approval.

Strategic Plan 2030 Highlights:

Generation:
• Increase gross power capacity from 18 GW to 30 GW in the UAE, and add up to 15 GW internationally
• Expand highly efficient reverse osmosis technologies to make up two-thirds of its desalination capacity by 2030 with 200 MIGD already under construction
• Focus on renewable energy – particularly solar photovoltaic (PV) – to comprise more than 30% of the power generation portfolio by 2030, up from the current 5%

Transmission & Distribution:
• Execute substantial UAE-based infrastructure and networks growth projects and invest an additional AED 40 billion by 2030 to grow its UAE Regulated Asset Base
• Continued focus on operational excellence, optimization and digitization 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
• Further strengthen the position of its operating company, Abu Dhabi Energy Services (ADES), and grow new services in demand-side management, enabling public and private entities to realize energy savings targets

H.E. 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 capitalize 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.

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