Mubadala, Taqa ink agreements to invest in Uzbekistan’s power sector

Mubadala Investment Company (Mubadala) and Abu Dhabi National Energy Company (Taqa) have signed agreements to invest in the privatisation of two gas-fired power generation plants in the Talimarjan power complex in Uzbekistan.

The binding agreements will see Mubadala and TAQA each acquire a 40 per cent stake in two gas-fired power plants with a combined capacity of 1.6 gigawatts (GW) and take on associated operations and maintenance activities. Talimarjan Issiqlik Elektr Stansiyasi JSC will retain the remaining 20 per cent stake in each plant.

The transaction remains subject to applicable regulatory or other approvals and conditions and is expected to be completed during the second half of 2023, according to the state news agency, WAM.

Suhail Mohamed Al Mazrouei, Minister of Energy and Infrastructure, commented: “The UAE continues to be a leader in providing secure and sustainable energy across the world and is actively investing in markets where it can leverage its expertise to create value for all stakeholders. The strategic partnership between the government of Uzbekistan, Taqa and Mubadala will serve as a vehicle for collaboration for both countries and will create a path for future growth and investment opportunities.”

Khaled Abdulla Al Qubaisi, CEO, Real Estate and Infrastructure Investments at Mubadala, said: “As a global and responsible investor, Mubadala is focused on supporting energy transition across the world. We are confident our partnership will contribute to Uzbekistan’s greater energy stability while preparing for a low-carbon future. We look forward to working with Taqa, the Ministry of Investment and Foreign Trade and JSC Thermal Power Plants to advance the country’s energy ambitions.”

Farid Al Awlaqi, executive director of Generation at Taqa Group, commented: “This major investment in a new country is an important step forward in the delivery of the 15GW of new international capacity we announced as part of Taqa’s 2030 growth strategy. Investment alongside Mubadala in these power plants means we will become a major generator in Uzbekistan. The deal also significantly expands our operation and maintenance activity, another key part of our strategy. Once the deal is complete, we will bring experience and expertise from our generation fleet around the world to help deliver the best possible performance from these plants.

The agreements follow the agreement in 2020 with Uzbekistan’s Ministry of Investment and Foreign Trade, and JSC Thermal Power Plants of Uzbekistan relating to the proposed acquisition, development and operation of the Talimarjan Power Complex.

In other news, Mubadala Petroleum has rebranded as Mubadala Energy. In line with the strategy driving the new branding, Mubadala Energy will expand its gas-weighted portfolio in areas such as LNG while exploring new energy sectors including blue hydrogen and carbon capture.

Read: Mubadala Petroleum rebrands as Mubadala Energy