Taqa ties up with Spanish firm
Posted: 27 May 2008
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Abu Dhabi National Energy Company (Taqa), has signed an agreement with Iberdrola, S.A., the world’s 4th largest electricity company, energy sector leader in Spain and world leader in renewable energy.
Under the contract, Taqa and its Spanish counterpart will explore co-investment and development opportunities in power generation, renewables and upstream assets in the Middle East, North Africa, Europe and North America.
A Joint Development Committee will be created to manage the relationship, consisting of senior representatives of each company.
“Both Taqa and Iberdrola share a vision of global growth and diversity,” said Peter Barker-Homek, chief executive officer of Taqa. “With Iberdrola’s successful track record, I believe this will be a very strong partnership.”
He said the deal is in line with Taqa’s growth strategy to target investment opportunities across the energy value chain in different territories in which Taqa currently has assets and have significant potential to build presence.
“This new agreement to collaborate in identifying energy investments around the world will benefit both companies, and specifically Iberdrola through the opportunity to grow in new markets such as North Africa and the Middle East with a partner that is already active there, as well as potential to continue building its already significant presence in Europe and North America,” said Iberdrola Chairman Ignacio Galan.
Barker-Homek reiterated Taqa’s venture into renewables is in line with Iberdrola which is a market leader in this area. “This agreement will open a number of interesting doors,” he said in a statement.
The renewable energy credentials of the world's largest operator of wind farms are of interest to Taqa, 75% owned by the Abu Dhabi government which controls over 90% of the oil reserves in the United Arab Emirates.
The UAE is the world's fifth largest oil exporter and Taqa is looking to expand as part of the Gulf Arab state's drive to diversify asset holdings and the country's economy in a bid to lessen its reliance on oil revenues.
An Iberdrola spokesman declined to say how much either company hoped to invest in the joint venture.
The contract was signed during a trip by Spanish dignitaries, including King Juan Carlos, to the Gulf region to promote Spanish business interests.
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