Emirates Global Aluminium (EGA), Abu Dhabi National Energy Company (TAQA), DUBAL Holding, and Emirates Water and Electricity Company (EWEC) have announced the signing of a series of agreements aimed at decarbonizing EGA’s aluminum production and expanding renewable and clean energy development in Abu Dhabi.

EGA has signed Abu Dhabi’s largest-ever electricity supply agreements with EWEC and TAQA Distribution, making EGA the single largest electricity customer on the Abu Dhabi grid. In addition, TAQA and DUBAL Holding will acquire EGA’s power and water generation assets in Al Taweelah for US$1.9 billion (approximately 7 billion AED), and TAQA Transmission will acquire and enhance EGA’s electricity transmission assets to allow for enhanced clean energy supply to EGA’s sites.

NERA supported EWEC, the single buyer of electricity and water in Abu Dhabi, in structuring and negotiating these agreements. Our assistance included assessing the economic benefits of the transaction, developing mechanisms for sharing risk, and allocating clean energy between the parties.

As a result of this transaction, EWEC will supply EGA with 23 terawatt hours (TWh) of electricity annually until 2049, with an increasing proportion sourced from renewable and clean energy. This initiative is expected to achieve annual greenhouse gas emissions savings of 3.5 million tons annually by 2035.