By: Utilities Middle east

Abu Dhabi National Energy Company PJSC (TAQA) and DUBAL Holding are set to acquire Emirates Global Aluminium’s (EGA) power and water generation assets in a landmark $1.9 billion (7 billion dirhams) transaction, according to a news report by Zawya.

The generation assets will be transferred into a newly formed joint venture, owned equally by TAQA and DUBAL Holding. A separate operating company, jointly owned by TAQA and EGA, will run the facilities once the deal closes.

As part of the wider agreement, the joint venture signed a long-term power purchase agreement with Emirates Water and Electricity Company (EWEC), under which EWEC will procure power from the Al Taweelah plant through to 2049.

TAQA Transmission will also take ownership of EGA’s electricity transmission assets as the companies further align their energy infrastructure strategies.

TAQA is an ADX-listed diversified utilities and energy group, while DUBAL Holding serves as the investment arm of the Investment Corporation of Dubai (ICD), the sovereign wealth fund of the Dubai government.