Taqa advances strategic Turkish power project with EUAS

Abu Dhabi National Energy Company (Taqa) has completed a pre-feasibility study and prepared an investment model for a major power project in the Afsin-Elbistan region of southern Turkey in co-operation with Electricity Generation Co. Inc. (EUAS).

The Turkish and Abu Dhabi governments on Tuesday signed a "joint declaration" in which they expressed their strong support for the co-operation between EUAS and Taqa regarding investment in and optimisation of an existing lignite power plant in the Afsin-Elbistan region; the development of mines; and the establishment of new power plants in the same region. Negotiations towards an Intergovernmental Agreement related to the project are continuing in the hope of completing it before the end of 2012, the declaration states.

The declaration was signed on behalf of the two governments by Hamad Al-Hurr Al-Suwaidi, Chairman of the Department of Finance of Abu Dhabi and Member of the Executive Council of the Emirate of Abu Dhabi and Taner Yildiz, Turkey's Minister for Energy and Natural Resources, in the presence of Khaled Al Mu'alla, Ambassador of the UAE to the Republic of Turkey.

Al-Suwaidi said: "This joint declaration further strengthens the relationship between Turkey and Abu Dhabi, and has been a successful follow-up to the official visit made by His Highness Gen. Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces."
Al-Suwaidi is also Chairman of Taqa.

The joint declaration follows meetings held between His Highness Gen. Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, President Abdullah Gul of Turkey, and Recep Tayyip Erdogan, Prime Minister of the Republic of Turkey in February 2012 and a subsequent agreement to explore energy investment opportunities in Turkey, announced in May 2012.

Carl Sheldon, Chief Executive Officer of Taqa, said: "Turkey is a new and exciting market for Taqa which fits well with our strategy to expand in the Middle East, North Africa and Europe. Turkey has great growth dynamics and is keen to attract foreign direct investment to develop its indigenous energy resources. As a full-scale energy company, Taqa is able to offer Turkey a durable partner to develop sizeable long-term energy projects of national importance."

In accordance with the framework agreed by the two governments, Taqa signed a memorandum of understanding with EUAS in August. Taqa has now completed the investment model and pre-feasibility study for the project with the support of expert teams from Taqa's existing coal and lignite power plants in Morocco and India.

The development of Turkey's indigenous lignite resources is a priority because it enables the nation to reduce its dependence on imported natural gas. Lignite's role in power generation is set to expand alongside rapid growth expected in electricity demand. Approximately 40 per cent of Turkey's lignite is located in the Afsin-Elbistan basin.

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