Posted on 17 January 2013
Taqa, an Abu Dhabi owned company has recently signed a coal plant deal with Turkey that could be worth $12 billion. The agreement was signed at the beginning of the month and allows Taqa to develop Turkish coal mines.
The company will work in conjunction with the Turkish government owned utility Elektrik Uretim, and is able to bring in other partners to help develop individual plants in order to spread costs. The deal is huge for this company, but it’s unlikely to be the last time an Abu Dhabi firm invests in Turkey’s energy sector.
The Turkish energy Minister, Taner Yildez has pointed out that Turkey has got a number of sound investment projects, while the UAE has the financial resources needed for these investments. The energy minister for the UAE, Muhammad Al Hamli agrees with this view, and has pointed out how substantially the trade volumes between the two countries have increased during the past 10 years. This shows the relationship between the two countries has increased on economic, cultural and political levels.
The next big investment between the two countries could involve nuclear power, as Turkey is seeking to increase its renewable energy through building nuclear power stations and has already awarded a tender to Russia. Tenders are already out for the second plant, and it’s quite possible Abu Dhabi could become an investor or a shareholder. Even if this doesn’t happen there are numerous other projects in the pipeline in the field of renewable energy and energy efficiency, and there is also the possibility that the two countries could cooperate in projects taking place in a third country.