TAQA Group FY 22 Results: Delivering on Our Promises

TAQA Group has always been driven by a commitment to deliver on its growth ambitions and meet demand for power and water in the UAE and beyond, while ensuring returns to its stakeholders.

TAQA is also committed to contributing to the global sustainability agenda, creating long-term value in the communities we operate in, and integrating sustainability into its corporate governance and operations.

Last year we set out our ESG strategy, including interim greenhouse gas (GHG) emissions reduction goals for 2030. Under the strategy, TAQA has committed to a 25% reduction of scope 1 and 2 emissions by 2030 across the Group, including a 33% reduction of UAE portfolio emissions compared to 2019. These goals represent a credible step towards achieving our commitment to being net zero by 2050 and are a demonstration of our commitment to playing a key role in achieving the energy transition.

Today, we announced that TAQA Group closed 2022 with a net income of AED 8.0 billion, showcasing a very strong performance which was underpinned by the successful execution of its growth strategy, strong operational performance in its contracted utilities business and an uplift in commodities prices.

During 2022 global energy markets have been in a state of uncertainty with concerns, especially in Europe, over security of supply of gas and the affordability of both gas and other fossil fuels. These disruptions have reminded policymakers of the need to reduce their dependency on a single fuel source while reinforcing the need to strike the right balance between energy security, affordability, and sustainability.

The world is accelerating the transition to cleaner, low carbon energy sources and this market turbulence has also reinforced the need to rapidly invest more. However, it has shown we are not yet ready to shut off the taps to gas and other fossil fuels, so we are pragmatic. The world will still need oil and gas for several decades to come to meet growing energy demand. As we have entered 2023, we are aware of geopolitical and macroeconomic uncertainties, but we also understand the urgent need for energy strategies that will secure supply in the short term, while also accelerating delivery of a more sustainable system in the long term.

As a utility, we are at the heart of balancing these two imperatives – on the one hand ensuring secure supplies of energy and water to meet current needs, and on the other hand investing to decarbonise.

At TAQA we are focusing on investing in low carbon energy sources, through the huge ambition we have for Masdar (via our recently acquired stake) which is aiming to reach 100GW renewables by 2030. We will be switching two-thirds of our water desalination to reverse osmosis by 2030 and we have already started retiring older gas fired plants to make way for lower carbon alternatives. At the same time, we are prioritising more efficient, lower carbon gas plants and optimising our oil and gas activities. We have also been supporting industrial and other partners to decarbonise their operations. Alongside ADNOC, we successfully completed the financial close of a $3.8 billion strategic project to power and significantly decarbonise ADNOC’s offshore production operations, through a high-voltage direct current sub-sea transmission network that will connect ADNOC’s offshore operations to Abu Dhabi’s onshore grid.

We are also working to acquire a 50% stake in EGA’s 6.4 GW power generation assets and connect EGA to the Abu Dhabi grid. This will enable the company to have access to clean energy sources and allow us to optimise the use of the power assets to help reduce emissions. We are also taking our expertise into new markets where it makes sense to do so. In 2022 TAQA announced it will enter Uzbekistan as part of their privatisation program, where we plan to acquire and operate gas-fired power plants in Talimarjan.

As we approach COP28 here in the UAE, the focus will be on ambitious actions rather than just pledges, so at TAQA we are contributing by putting our emphasis on delivering tangible actions.

COP28 will be the first Global Stocktake (GST), providing an assessment of the progress made since the adoption of the Paris Agreement. With only 7 years left to meet the 2030 Agenda Goals, this will be a unique opportunity to reassess, reset, and refocus the climate agenda. We already know that the challenge for many companies and nations will be how to deliver on what they have pledged in the past, I am determined to ensure TAQA remains on track to deliver on what we have promised and to play our part in the energy transition.

I would like to personally thank our employees, shareholders, partners and stakeholders for their continued trust and support throughout 2022.

TAQA Group Reports Full Year 2022 Net Income of AED 8 Billion – TAQA