Abu Dhabi National Energy Company (TAQA) and Emirates Water and Electricity Company (EWEC) have signed a power purchase agreement to develop 1 gigawatt (GW) of new open-cycle gas turbine (OCGT) generation capacity, the companies said on Thursday, in a move that aligns with the UAE’s Artificial Intelligence Strategy 2031 and its Net Zero by 2050 initiative.
The project, to be fully owned and operated by TAQA under a 24-year agreement, is part of a broader AED 36 billion ($9.8 billion) investment in the emirate’s power infrastructure. TAQA Transmission, a subsidiary of the energy firm, will also develop and deploy advanced grid infrastructure to integrate the capacity into Abu Dhabi’s power network.
The deal is a major step toward boosting reliable power supply as the UAE prepares for increasing electricity demand driven by AI and digitalization initiatives. It also complements EWEC’s recently announced giga-scale “round-the-clock” renewable energy project with Masdar, which will deploy 5.2GW of solar photovoltaic (PV) capacity and 19GWh of battery storage to deliver 1GW of renewable power continuously.
“This project enables the delivery of reliable, low-carbon power — a key enabler of the global energy transition,” said Jasim Thabet, Group CEO and Managing Director of TAQA, and Vice Chairman of Masdar. “As the largest shareholder in Masdar and through our grid and generation expertise, TAQA is helping ensure the UAE’s clean energy ambitions are met without compromising energy security.”
The partnership will allocate roughly 75% of the AED 36 billion investment toward renewable and conventional generation assets, while 25% will go toward transmission infrastructure. Grid investments will be added to TAQA’s regulated asset base.
EWEC’s Chief Executive Officer Ahmed Ali Alshamsi said the agreement is designed to “accelerate the nation’s energy transition while laying the groundwork for an AI-powered future.”
“This collaboration sets a global benchmark for sustainable, digitally enabled energy systems,” he said.
The new OCGT plant, located in the Al Dhafra region, is designed to respond rapidly to fluctuating power needs and will support baseload reliability as more intermittent renewables enter the grid.
EWEC, which oversees power and water supply in the UAE, currently supplies more than 55% of Abu Dhabi’s electricity from clean or renewable sources.
The utility also aims to decarbonize water production, shifting over 92% of output to be powered by reverse osmosis technology by 2031. This will slash carbon emissions from 16kg to 1kg of CO₂ per cubic metre of water, the company said.
