Taqa gets funding for $980m Al Dhafra power plant

Abu Dhabi National Energy Co (Taqa) has secured funding for the AED3.6 billion ($980.3 million) Al Dhafra power plant from 14 local and international banks.

The project, located in the emirate of Abu Dhabi, will be funded 85 percent through debt financing from both local and international banks, Taqa said in a statement to the Abu Dhabi Securities Exchange (ADX) on Tuesday.

The lenders 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 1-gigawatt Al Dhafra Gas Turbine project has already begun, the statement said.

Taqa owns 100 percent of both the project and the operation and maintenance (O&M) companies. In April, it signed a 24-year power purchase agreement with the state-backed Emirates Water and Electricity Company.

“We have taken the project from inception to development, through to beginning construction, and now to financial close at record speed — demonstrating our agility and commitment to supporting the rapid growth in energy needs driven by AI data centres,” said Taqa chief investment officer – generation business Frank Possmeier.

Al Dhafra plant will support Masdar’s first giga-scale 24/7 solar and battery storage project in Abu Dhabi.

Taqa owns 43 percent of Masdar. State-run Abu Dhabi Power Corporation holds a 90 percent stake in  Taqa.

Taqa shares closed at AED3.53 on the ADX on Monday. The stock is up 13 percent over the last year.