Abu Dhabi National Energy Co., better known as Taqa, said Thursday it signed an inter-governmental agreement with Turkey for the development of power plants and associated coal mines in the southern Turkish region of Afsin-Elbistan.
According to the agreement, which marks the start of exclusive talks between the Abu Dhabi firm, Turkey's Electricity Generation Co., EUAS, and the Turkish government, Taqa will build 7,000 megawatts of generation capacity.
Turkish Energy Minister Taner Yildiz was quoted in the local press as saying that the investment may total $12 billion.
Taqa and EUAS have signed a memorandum of understanding for
the establishment of a project company in which the Emirati firm and any
future partners would retain the majority shareholding.
The project company will acquire, upgrade and expand an
existing 1,400 MW plant and develop several new power plants and
associated mines in sectors C, D, E and G of the Afsin-Elbistan region.
Preparatory work on the existing plant and the feasibility
study for a planned 1,440 MW plant and associated mine development will
start immediately.
The Afsin Elbistan site has 40% of Turkey's reserves of lignite, a soft brownish-black coal, according to Taqa.
Taqa's assets and operations currently are focused in North
America, the Netherlands and the U.K., but it is trying to expand its
reach in the Middle East and North Africa.