Abu Dhabi National Energy Company PJSC, one of the largest listed integrated utilities in Europe, the Middle East and Africa, reported its earnings for the period ending 30 September 2023 and unveiled revised growth targets that will see the Group accelerate the development of new power and water generation assets while maintaining its transmission and distribution infrastructure investments
The updated investment plan also targets a higher share of renewables within its portfolio by 2030.
Building upon its 2021 growth strategy, the revised growth targets see TAQA aiming for 150 gigawatts (GW) of gross power generation by 2030, up from the previous target of 50 GW, with around 65% of its generation capacity coming from renewable power sources. Previously, TAQA had committed to a target of 30%; however, with its leading stake in Masdar’s renewable energy operations, the Group has upgraded this target. On a standalone basis, Masdar’s clean generation capacity is expected to reach 100 GW by 2030. In terms of net power generation capacity, TAQA is set to reach 50 GW by 2030, up from its current net capacity of 17 GW.
TAQA is also ramping up its growth targets for water generation with a plan to increase the Group’s water generation capacity to 1,300 MIGD, with two-thirds of this capacity coming from the highly efficient and low carbon reverse osmosis (RO) technology. Currently, TAQA’s desalination capacity sits at just over 1,180 MIGD.
To facilitate the development of future projects and associated infrastructure networks, TAQA is planning to invest US$20bn (AED 75 billion) until 2030 towards power and water capacity expansion and UAE-based transmission and distribution networks. This figure includes the previously committed spend of US$10bn (AED 40 billion) between 2021 and 2030 to grow its UAE transmission and distribution networks.
TAQA is also actively seeking to expand its Transmission and Distribution business beyond the UAE through both inorganic and organic opportunities.
In the first nine months of 2023, TAQA delivered a solid financial performance driven by strong and stable returns from its long-term contracted utilities business whilst it has remained focused on delivering its growth strategy.
Jasim Husain Thabet, TAQA’s group CEO and managing director, commented, “In the first nine months of 2023, TAQA remained unwavering in its commitment to creating long-term shareholder value, delivering a steady performance on the back of strong returns from the Group’s utility business despite headwinds caused by fluctuations in commodity prices and the enforced shutdown of our production in Iraq.
"I am pleased to note that we have continued to deliver on TAQA’s growth agenda with project execution across the Transmission and Distribution segment, further supported by a pickup in regulated capital expenditure. During the third quarter of 2023, we reached financial close on a US$ 2.2bn (AED 8.3 billion) sustainable water supply project in collaboration with ADNOC as TAQA continues to be a partner of choice for industrial players and their decarbonisation ambitions towards net zero. As a low-carbon power and water champion and in line with TAQA’s Green Finance Framework and ESG Strategy, we also completed the secondary listing of our dual-tranche bonds onto the ADX, including our first TAQA-issued green bond,” concluded Husain Thabet
On TAQA’s revised growth targets, he added: “We approach the year-end with positive momentum as TAQA continues to expand its footprint domestically and internationally in line with our revised growth targets. Our continued success and rapid expansion have made it imperative to align our targets to the evolving ambition of the business while maintaining our commitment to innovation and delivering on our promise to our stakeholders. TAQA is an excellent example of the energy transition in action as we turn ambition into tangible outcomes to support the UAE’s decarbonisation efforts. TAQA’s growth has laid the foundation for achieving sustainable growth, putting us on the path towards a low carbon future whilst maintaining attractive returns for our shareholders and helping to deliver energy security in the markets we serve.”
Upon approval of the financial results, TAQA’s Board of Directors also declared a third interim cash dividend for the year of 0.65 fils per share (approximately AED 731 million), in line with the Company’s new dividend policy.
