ABU DHABI’S TAQA AIMS TO HAVE 10% RENEWABLES IN PORTFOLIO BY 2030
▶ Following a profitable 2018, energy company pursues new opportunities after a four-year transformation plan
Abu Dhabi Energy Company, or Taqa, will have 10 per cent of its portfolio generated from renewable energy sources by 2030, as it looks to expand its footprint in the Middle East, North and sub-Saharan Africa, according to a senior official.
“We would like to diversify our portfolio and start getting more projects from renewable energy,” AbdulAziz Al Obaidli, vice president of Taqa UAE, GCC and India, told The National.
“Our focus is the GCC countries, Jordan and the sub-Saharan African countries. The reason for this is that we position ourselves as the strategic partner for the governments of the countries we work in.”
Taqa, which has utilities regulator Abu Dhabi Water and Electricity Authority as a majority stakeholder, had a profitable 2018 on the back of improved commodity prices.
The energy company, which has investments in North America, Europe and Iraq, swung to a Dh153 million profit in the third quarter of 2018, recouping from a loss of Dh194m a year earlier.
The company, which is traded on the Abu Dhabi Securities Exchange, also reported a fivefold increase in its 2018 secondquarter net profit.
While declining to comment on its profit outlook for the last quarter and the upcoming financial year, Mr Al Obaidli said that the company was realising results of the transformation plan carried out between 2014 and 2017.
“After this transformation programme in the last three to four years, it’s time for us to step back in the market and find opportunities, so we are actively now monitoring the market, especially the markets in which we’re active in,” he said.
Taqa has 17 gigawatts of installed power capacity, which Mr Al Obaidli said would be increased over the coming years through strategic acquisitions.
As part of its strategy to look for opportunities, Taqa is looking at a 200MW power plant in Morocco, added Mr Al Obaidli. Taqa has a Moroccan unit listed on the Casablanca Stock Exchange.
“We supply up to 50 per cent of the power requirements in Morocco and that will be our hub to move towards projects in the region,” he said.
The company was also bullish about growth opportunities in Saudi Arabia and Kuwait thanks to ongoing privatisation efforts in the countries’ utilities businesses.
“We have today eight power plants, which all have today water desalination facilities and these are all in the UAE. Today, we’re bidding for two opportunities in Kuwait, one in Saudi Arabia and in Oman [and there are] several opportunities of course,” said Mr Al Obaidli.
Last year, Taqa registered gains of Dh86 million from the handover of management control of its Indian entity Himachal Sorang Power to Greenko East Coast Power Projects.
Taqa will continue to “opportunistically” pursue growth opportunities in the Indian power sector, but it remains committed to its core market.
“We don’t have today a clear decision to exit but on a continuous basis we assess the potential exit of non-core assets [to see] if we can bring value,” said Mr Al Obaidli.
It’s time for us to step back in the market and find opportunities, so we are actively now monitoring the market