Abu Dhabi National Energy Company ( Taqa ), together with Emirates Water and Electricity Company ( Ewec ), has reached financial close on the 1-gigawatt Al Dhafra gas-fired power plant.

The project, estimated to cost abourt 3.6 billion dirhams ( US$980 million ), is 85%-funded by bank debt provided by 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.

The Al Dhafra plant will provide electricity to data centre projects while advancing the UAE National Strategy for Artificial Intelligence 2031. Construction of the gas turbine project is already underway.

Taqa owns 100% of both the project company and the operation and maintenance ( O&M ) company. It will build, own, and operate the plant.

Taqa signs 24-year PPA

Last April, Taqa signed a 24-year power purchase agreement ( PPA ) with Ewec, which is the sole procurer and supplier of water and electricity in Abu Dhabi.

Commenting on the project, Frank Possmeier, chief investment officer of Taqa’s generation business, says: “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 prioritizes decarbonization and flexibility."

He notes that Taqa has taken the project from inception to development, the start of the construction, and through to financial close at record speed – “demonstrating its agility and commitment to supporting the rapid growth in energy needs driven by AI data centres.”

Mohamed Almarzooqi, chief asset development and management officer at Ewec, adds: “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.”

Low carbon footprint

Taqa Transmission, part of Taqa Group, will develop advanced power grid infrastructure to integrate the additional generation capacity to new sources of energy demand, enabling access to reliable power with low carbon footprint.

Al Dhafra plant is part of the announced investment of 36 billion dirhams in energy supply infrastructure in Abu Dhabi by Ewec, Taqa, and Masdar.  

Delivering up to 1GW of baseload power every day from renewable energy, the project will be the largest combined solar and battery energy storage system ( BESS ) in the world.

Taqa, which owns a 43% stake in Masdar’s renewable energy business, aims to reach 150GW in gross power generation by 2030.