Source : WAM
Abu Dhabi National Energy Company PJSC (TAQA), in partnership with Emirates Water and Electricity Company (EWEC), announced on Tuesday the financial closing of the AED3.6 billion, 1GW Al Dhafra Power Plant. The project will supply electricity to data centre developments and support the UAE National Strategy for Artificial Intelligence 2031.
Around 85 per cent of the project’s funding has been secured through debt financing from a consortium of local and international banks. These include Standard Chartered Bank, Abu Dhabi Commercial Bank, Agricultural Bank of China, Doha Bank, First Abu Dhabi Bank, HSBC, ICBC, KFW, National Bank of Kuwait, RAK Bank, Woori Bank, Abu Dhabi Islamic Bank PJSC, Boubyan Bank and Ajman Bank.
Construction of the Al Dhafra Gas Turbine project is already underway and is being delivered by TAQA at an accelerated and unprecedented pace.
TAQA holds full ownership of both the project company and the operations and maintenance (O&M) company, and will build, own and operate the 1GW facility. The project’s financial close follows TAQA’s signing of a 24-year Power Purchase Agreement (PPA) with EWEC in April.
“AI represents a major opportunity for both economic growth and increased energy demand. Meeting this demand requires an agile, secure, and sustainable energy mix that prioritises decarbonisation and flexibility,” said Dr. Frank Possmeier, Chief Investment Officer, TAQA’s Generation business. “The Al Dhafra Gas Turbine Power Plant exemplifies this approach.”
TAQA has progressed the project from initial concept and development through to construction and financial close at record speed, highlighting its agility and commitment to meeting the rapidly rising energy needs driven by AI-focused data centres.
He added that the plant will also play a vital role in delivering flexible baseload power, enabling greater integration of renewable energy into the power system.
Mohamed Almarzooqi, Chief Asset Development and Management Officer of EWEC, said, “As a key enabler of the UAE National Strategy for Artificial Intelligence 2031, Al Dhafra Power Plant provides the critical energy infrastructure required to power the next generation of data centres and strengthen the nation’s position as a global leader.
“Furthermore, the flexible baseload power that will be delivered by this plant complements our growing pipeline of utility-scale renewables and battery storage, providing the essential transitional capacity needed to integrate significantly higher levels of clean energy into the grid.”
TAQA Transmission, part of the TAQA Group, will also develop advanced power grid infrastructure to connect the additional generation capacity to new sources of energy demand, ensuring reliable electricity supply with a reduced carbon footprint.
The Al Dhafra plant forms part of a broader AED36 billion investment in energy supply infrastructure in Abu Dhabi by EWEC, TAQA and Masdar. This investment will support Masdar’s world-first initiative to deliver renewable energy around the clock, further strengthening the UAE’s position as a global leader in renewable energy and low-carbon infrastructure.
The initiative will deliver up to 1GW of continuous baseload power generated from renewable sources, making it the largest combined solar and battery energy storage system (BESS) in the world, while also supplying electricity to AI data centres.
Aligned with TAQA’s growth strategy and its 43 per cent shareholding in Masdar’s renewable energy business, the company aims to reach 150GW of gross power generation capacity by 2030 and remains on track to achieve this target.
