TAQA H1 2021 Results - Energy Transition and Financial Performance
Abu Dhabi power & water sector dynamics
TAQA structurally integral to the entire Abu Dhabi power & water value chain
Abu Dhabi Water & Power Supply Chain
Abu Dhabi Department of Energy
(formerly the Regulation and Supervision Bureau, RSB)
Key Market Features
FSA²
ADNOC
- -
Fuel
| Regulates and oversees
Emirates Water & Electricity Company (EWEC)
DEL1
FSA²
Buys power & water
Generation
I(W)(P)Ps
10x TAQA
I(W)PPS
3x I(W)(P)Ps
(under development)
Other
Generators
TAQ
capacity under
P(W)PAS
Material flow
Contractual flow
Transmission
I
BST
Distribution
1
EWEC procures electricity/water under long-term (P)(W)PAs with I(W)(P)Ps (which
typically last 20-30 years) which is sold to distribution companies
Abu Dhabi
Dept. of
Finance
2
(MAR less tariffs)
Balance
3
ADDC
TUOS
4
P&W
TRANSCO
I MAR
P&W
AADC
Commercial
TAQA monopoly on
T&D in Abu Dhabi
P&W
Consumers
Household
Industry
Customer
Tariffs
Distributors purchase from EWEC under BST agreements,
while paying TRANSCO a TUOS charge
Ownership of I(W)PPs are split 60-40 between the government (with TAQA holding
100% of the government's share for 10 current assets and a minimum 2/3rds of the
government's share until February 2030) and private companies, respectively
TAQA holds perpetual licenses for the Transmission and Distribution
assets in Abu Dhabi
5
For T&D, MAR per annum is calculated formulaically, of which 85% is derived from
fixed components (consisting of depreciation, opex and return on capital)
6
IWPPS are paid capital recovery and fixed O&M costs on a committed availability
basis, in addition to variable O&M, while EWEC provides IWPPs fuel for free
through a fuel service agreement; EWEC pays ADNOC and DEL for fuel separately
Notes: I(W)(P)P = Independent (Water) (and) (Power) Producer; P&W = power and water; TRANSCO = Abu Dhabi Transmission & Dispatch Co.; ADDC = Abu Dhabi Distribution Co; AADC = Al Ain Distribution Co; ADNOC = Abu Dhabi National Oil Co.; DEL = Dolphin Energy Ltd.; BST
= Bulk Supply Tariff; TUOS = Transmission Use of System; MAR = Maximum Allowed Revenue, as defined by the First Regulatory Controls 1 (RC1) framework; (P)(W)PA = (Power) (and) (Water) Purchase Agreement
40
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