Abu Dhabi-based utility firm Taqa has signed a 24-year power purchase agreement (PPA) with Emirates Water and Electricity Company (EWEC) to develop the 1GW Al Dhafra Open-Cycle Gas Turbine (OCGT) project. The agreement grants Taqa full ownership of the project, with responsibility for its operation and maintenance.

The Taqa Transmission subsidiary will also oversee the development of advanced power grid infrastructure to integrate new generation capacity into the UAE’s electricity network. This initiative is aligned with the recently announced EWEC-Masdar project, which aims to provide renewable energy 24/7, positioning the UAE as a leader in low-carbon energy infrastructure.

The Al Dhafra facility will contribute up to 1GW of base-load power daily, making it the largest combined solar and battery energy storage system (BESS) in the world.

Major Investment in Energy Infrastructure

The agreement is part of a Dh36 billion investment plan for Abu Dhabi’s energy supply infrastructure, with 75% allocated to renewable and conventional power generation and the remaining 25% invested in grid expansion. The grid infrastructure will be incorporated into the regulated asset base and will receive a regulated return.

Jasim Thabet, Group CEO and Managing Director of Taqa and Vice-Chairman of Masdar, highlighted the company’s role in advancing clean energy solutions.

“Through our expertise in power generation and transmission – and as the largest shareholder in Masdar – Taqa plays a central role in driving the UAE’s clean energy transition. We remain committed to ensuring reliable, low-carbon power at all times,” he said.

The UAE continues to expand its renewable energy capabilities, reaffirming its commitment to sustainable and low-carbon energy infrastructure on a global scale.