TAQA signs major Turkish power agreement
Project will see development of power projects with up to 7GW capacity
Abu Dhabi’s TAQA has entered into exclusive negotiations with Turkey’s Electricity Generation Co. (EUAS) and the Turkish government for the development of power plants and mines in the Afsin-Elbistan region of Turkey. The project will see the development of power generation capacity of up to 7,000 MW.
TAQA and EUAS have signed a Memorandum of Understanding that will see the founding of a project company, where TAQA and any future partners will hold a majority share. Under the Intergovernmental Agreement, this project firm will acquire, upgrade and expand an existing 1,400 MW plant (Plant B), as well as developing a number of brand new facilities, including a planned 1,440 MW Plant C facility.
“This agreement further strengthens the bond between Turkey and the UAE, adding an important commercial dimension to this strategic relationship,” said H.E. Mohamed bin Dhaen Al Hamli, the UAE’s Minister of Energy.
TAQA CEO, Carl Sheldon, said of the deal: “As a full-scale energy company, TAQA offers Turkey a durable partner to develop this strategic project enhancing Turkey’s energy security. This agreement paves the way for TAQA to enter an emerging merchant market for power, demonstrating TAQA’s increasing maturity as a developer and operator of assets through the energy value chain.”
Turkey is looking to developing its lignite resources as a means to reduce dependency on imported natural gas. Around 40% of its lignite resources are located in the Afsin-Elbistan region.
A more detailed Host Governmental Agreement on the development is expected to be signed in the second quarter of this year.