Abu Dhabi National Energy Company PJSC (TAQA) and Dubal Holding plan to acquire Emirates Global Aluminium's (EGA) power generation assets in the UAE as part of plans to expand clean energy development.

TAQA and Dubal Holding, the investment vehicle for energy and commodities, will hold 50 percent share each of EGA's power assets, the Abu Dhabi listed energy company said in a bourse filing on Wednesday.

No terms of the acquisitions were disclosed.

The power generated from the assets would be supplied to the grid under a long-term power purchase agreement with despatch of the assets through EWEC’s load despatch centre.

The assets, located in Jebel Ali and Al Taweelah, total 6,474 megawatts of power generation capacity, predominantly combined cycle gas turbines technology. TAQA’s operating company, Abu Dhabi Transmission and Despatch Company (TRANSCO), would connect the power assets to the grid, “as well as investing in developing the interconnections to upgrade the network to include new substations and strengthening connectivity in the UAE,” the statement said.

EGA would source power from the grid through a long-term electricity supply agreement, including an increasing proportion of clean energy procured by EWEC. This would make EGA the largest single electricity consumer on the grid.

This would advance EWEC’s development of new solar energy projects, which would be utilized by EGA. The aluminium producer would also have access to clean power from existing solar power generation assets, and the Barakah nuclear power plant for other low carbon aluminum products.

Abdulnasser Bin Kalban, Chief Executive Officer of EGA, said: “Sourcing cost effective clean power from the grid will enable EGA to lead our global industry into a more sustainable future."

Jasim Husain Thabet, Group Chief Executive Officer and Managing Director of TAQA, said that working together with EGA, Dubal Holding and EWEC, "we will enable EGA to connect to a diverse energy mix as well as allow for the development of additional renewable energy projects in Abu Dhabi.”

The initiative is subject to further negotiation and regulatory approvals in both Abu Dhabi and Dubai.

UAE has committed to  fully decarbonise its economy and reach net zero greenhouse gas emissions and reach net zero by 2050.

(Reporting by Brinda Darasha; editing by Daniel Luiz)