The Abu Dhabi National Energy Company (TAQA) and the Emirates Water and Electricity Company (EWEC) have agreed to develop and implement new energy infrastructure projects that will support the United Arab Emirates (UAE)’s National Strategy for AI 2031.
As part of the collaboration, which will also support the UAE’s net zero 2050 goals, TAQA has entered a 24-year power purchase agreement with EWEC to construct, own and operate the 1GW Al Dhafra open-cycle gas turbine (OCGT) project in the UAE.
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TAQA will fully own the OCGT project, handling the operation and maintenance of the facility.
Furthermore, TAQA Transmission, a division of TAQA Group, will develop advanced grid infrastructure to incorporate the additional generation capacity to cater to new energy demands, ensuring access to dependable power with a minimal carbon footprint.
These ventures will complement the recently announced EWEC and Masdar project, which will allow renewable energy to be delivered around the clock.
The project, which will supply up to 1GW of baseload power daily, is set to feature the largest integrated solar and battery energy storage system globally.
The joint action of EWEC, TAQA and Masdar will see an investment of Dh36bn ($9.8bn) in energy infrastructure in Abu Dhabi, with 75% of the funds directed towards renewable and conventional power generation.
The remaining 25% will be allocated to grid infrastructure, which will be incorporated into the regulated asset base and earn the regulated return.
TAQA Group managing director and CEO and Masdar vice-chairman Jasim Thabet stated: “Providing reliable low-carbon power plays an important role in enabling the global energy transition.
“Through our expertise in power generation and transmission, and as the largest shareholder in Masdar, TAQA plays a central role in advancing clean energy solutions in the UAE, and we remain committed to ensuring reliable, low-carbon power at all times.
“As a champion of low-carbon power and water, we are proud to be a part of these world-class projects alongside our partner EWEC.”
EWEC has marked a significant milestone in Abu Dhabi’s energy sector, now providing 55% of the emirate’s power demand from renewable and clean energy sources.
More than 92% of the city’s water production will come from reverse osmosis technology, aiming to reduce water production emissions from 16kg/m³ in 2021 to 1kg/m³ by 2031.
EWEC CEO Ahmed Ali Alshamsi stated: “EWEC is pleased to partner with TAQA on transformative initiatives that will not only power the UAE’s AI ambitions but also accelerate the nation’s energy transition.
“By creating a future-ready energy framework that integrates next-generation renewable energy technologies and advanced transmission solutions, this collaboration is setting a new global benchmark for sustainable energy systems that balances sustainability with operational excellence.
“As the UAE transitions into an AI-powered future, we are creating the foundation for a future where advanced technologies can flourish, while meeting the country’s forward-thinking environmental and economic goals.”
In February 2025, Masdar signed an agreement with TAQA Transmission and Eni to advance the energy partnership between the UAE, Italy and Albania.
