Abu Dhabi National Energy Company PJSC (Taqa) has inked two deals in recent weeks including an MoU with Iberdrola SA, the world’s fourth largest electricity company, and is in the process of finalising four other deals worth $5 billion.

The second deal it signed was a partnership agreement with Theolia, a leader in the production of electricity from wind energy, thus marking its foray into the renewable energy sector in Morocco.
Agreements it is in the process of clinching include one with a major US utility.
The MoU with Iberdrola SA, an energy sector leader in Spain and world leader in renewable energy, is a commitment to explore co-investment and development opportunities in power generation, renewables and upstream assets in the Middle East, North Africa, Europe and North America, a joint statement said.
A joint development committee will be created to manage the relationship, consisting of senior representatives of each company.
The agreement was signed by Ignacio Galan, chairman and CEO of Iberdrola, and Hamad Al-Hurr Al-Suwaidi of Taqa.
Commenting on the announcement, Peter Barker-Homek, CEO of Taqa, said both Taqa and Iberdrola shared a vision of global growth and diversity and that the announcement was in line with Taqa’s growth strategy to target investment opportunities across the energy value chain in different territories.
“With Iberdrola’s successful track record, I believe this will be a very strong partnership,” said Barker-Homek. 
“The regions we have identified as a focus are places where Taqa currently has assets and we have significant potential to build on our presence in these areas.  Furthermore, I have always been vocal about my commitment to take Taqa into renewables, and with Iberdrola’s position as market leader in this area, this agreement will open a number of interesting doors.”
Galán commented: “This memorandum of understanding that we have signed with a company as prestigious as the Abu Dhabi National Energy Company is consistent with Iberdrola’s clear strategic focus on international expansion over the past few years. Thanks to this strategy, the company has become the fourth largest in the world energy sector by market capitalisation, the leading Spanish energy company and world leader in wind power.”
Galán said the agreement to collaborate in identifying energy investments around the world would benefit both companies and specifically Iberdrola through the opportunity to grow in new markets such as North Africa and the Middle East with a partner that is already active there, as well as the potential to continue building its already significant presence in Europe and North America.”
Founded in 2005, Taqa is a global energy company with a growing asset base that exceeds Dh86 billion ($23.4 billion). One of the largest companies listed on the Abu Dhabi Securities Market (ADSM) and having 2007 revenues of more than Dh8 billion ($2 billion), Taqa is a flagship corporation for the Government of Abu Dhabi. 
Its strategic goal is to build and operate a geographically diverse global portfolio of energy businesses across the value chain. It has operations in power generation, water desalination, upstream oil/gas, pipelines, and gas storage.
Taqa employs approximately 2,800 people from 38 different nations and operates from its offices in Abu Dhabi; Ann Arbor, Michigan; Aberdeen; Amsterdam; Calgary and The Hague. This footprint is further extended through alliances with partners across Africa, the Middle East, Europe, North America and India. 
It carries Aa2 and AA- credit ratings from Moody’s and S&P respectively.
Iberdrola is a global, publicly listed company, with a 107-year history of contributing to the development of the energy sector, and of providing quality and security of supply. Over the past seven years, Iberdrola has grown in size by 4.5 times and increased its stock market value to nearly $80.5 billion at the end of 2007. This significant growth has gone hand in hand with a large increase in capacity and production. The company now has an installed capacity of 42,500 MW and a balanced, efficient and diversified generation mix, ensuring the ability to respond to any eventuality.
A firm and pioneering commitment to cleaner generation technology and respect for the environment have confirmed Iberdrola as world leader in wind power. Through its subsidiary, Iberdrola Renovables, it has an operating capacity of 8,200 MW and a project pipeline of more than 43,000 MW, half of which is in the United States.
The company’s strategic plan for 2008-10 sets investments of more than $37.2 billion to meet ambitious targets, among which are achieving a renewable energy capacity of 13,600 MW, optimising service quality for customers and achieving a net profit of $5.4 billion.
Through its engineering and construction subsidiary, Iberdrola is developing several projects for third parties in the Middle East, among them the construction of the largest combined cycle power plant in the region, the 2,000 MW facility in Messaied (Qatar). It is also building an open cycle plant at Fujairah in the UAE (225 MW) and a 150 MW thermosolar plant at Kuraymat in Egypt, and is involved in other projects under way.

The Theolia deal
The agreement aims to create a consortium to respond jointly to the international invitation to tender for the construction and operation of a 300 MW wind farm located in Tarfaya, Morocco.
Taqa and Theolia have agreed to a joint partnership in the Compagnie Eolienne du Détroit (CED), including studying the possibility of optimising wind sites in Morocco, notably the Abdelkhalek Torres wind farm near the current site of CED.
The CED site is located in the North of Morocco and enjoys excellent wind conditions, thus offering a double opportunity - the possible repowering of the 84 turbines commissioned in 2000 and the possible extension of the wind farm by several hundred additional MWs.
Taqa and Theolia are two major players in the production of electricity in Morocco. Taqa, which owns and operates a 1,356 MW thermal power station, provides about half of the annual electricity production of the kingdom, while Theolia, with its 50.4 MW wind farm, is the leading producer of electricity from wind energy in Morocco.
With this alliance, the duo display their confidence in the potential of the renewable energy sector in Morocco and the emerging markets in general, said a Taqa statement.
Barker-Homek said the agreement was a real milestone for Taqa as it marks its first step into renewable energy.
“Our strategy is to diversify across the energy value chain in different territories, and by joining forces with Theolia in CED we feel that we are in a good position to bid for the new wind farm capacity.  This is truly in line with our growth strategy and my vision for the company.”
Jean-Marie Santander, chairman and CEO of Theolia, said the alliance confirmed the development strategy of Theolia in the emerging markets.
“Together, Theolia’s expertise and Taqa’s strength will give birth to a major player in the production of electricity from renewable energy in Morocco and the emerging markets in general,” he added.

Set to clinch new deals
Taqa has said it expects to announce four new deals worth around $5 billion this year, including a joint venture with a major US utility.
“We are in the final stages of negotiations on a number of transactions that we haven’t announced,” Barker-Homek told reporters in Abu Dhabi.
“We can safely say $2.5 billion of viable opportunities that we will be announcing shortly have been identified and $2.5 billion more to do. I would expect that it would be about four transactions this year.”
Taqa plans to triple the value of its assets to $60 billion by the end of 2012 from around $21 billion now and Barker-Homek said it was on track to meet its target with an annual growth rate of 25 per cent. The utility and petroleum firm last year made acquisitions worth some $11 billion around the world, including the purchase of Canada’s PrimeWest Energy Trust for $4.98 billion.
Taqa would use a $1.13 billion bond sale announced recently to pay down existing facilities and finance acquisitions and might seek further financing later in the year, he said.
“Our initial use of proceeds will be to pay down existing facilities and have these facilities on standby for acquisitions,” he said.
Barker-Homek said there were no immediate plans to sell more bonds but that the firm had “historically gone to the bond market around September and October.”