Abu dhabi: Abu Dhabi National Energy Company PJSC (TAQA), in partnership with Emirates Water and Electricity Company (EWEC), announced the financial closing of the AED3.6 billion Al Dhafra Power Plant, a 1GW facility set to power data centre projects and support the UAE National Strategy for Artificial Intelligence 2031.
According to Emirates News Agency, the financing for the Al Dhafra Power Plant is predominantly secured through debt, covering around 85 percent of the total cost. This funding is sourced from a consortium of local and international banks, including 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 construction of the Al Dhafra Gas Turbine project has commenced, spearheaded by TAQA at an accelerated pace. TAQA has full ownership of both the project company and the operation and maintenance company, ensuring it will build, own, and operate the 1GW plant. The financial close came after TAQA signed a 24-year Power Purchase Agreement (PPA) with EWEC in April.
Dr. Frank Possmeier, Chief Investment Officer of TAQA’s Generation business, highlighted the importance of AI in driving economic growth and increased energy demand, emphasizing the need for a secure and sustainable energy mix. The Al Dhafra Gas Turbine Power Plant is designed to meet these needs by providing flexible baseload power, facilitating the integration of renewable energy.
Mohamed Almarzooqi, Chief Asset Development and Management Officer of EWEC, remarked on the plant’s role in fulfilling the UAE National Strategy for Artificial Intelligence 2031 by providing essential energy infrastructure for future data centres. He emphasized the plant’s contribution to integrating higher levels of clean energy into the grid, supported by a growing pipeline of renewables and battery storage.
TAQA Transmission, a segment of TAQA Group, will develop advanced power grid infrastructure to accommodate the additional generation capacity, ensuring reliable power with a low carbon footprint. The Al Dhafra plant is part of a larger AED36 billion investment in Abu Dhabi’s energy supply infrastructure, supporting Masdar’s initiative to dispatch renewable energy continuously. This project underscores the UAE’s leadership in renewable energy and low-carbon infrastructure.
With plans to deliver up to 1GW of baseload renewable energy daily, the Al Dhafra Power Plant will be the world’s largest combined solar and battery energy storage system, also powering AI data centres. TAQA aims to expand its power generation capacity to 150 GW by 2030, driven by its growth objectives and its significant shareholding in Masdar’s renewable energy company.
