In a landmark deal that strengthens international energy cooperation, Mubadala and TAQA acquire 875MW gas-fired power plant in Uzbekistan, marking a crucial step in the country’s energy sector reforms. This move highlights growing collaboration between the UAE and Uzbekistan, especially in sustainable infrastructure and energy development.
A Major Step in Uzbekistan’s Energy Sector Reform
Abu Dhabi-based sovereign investor Mubadala and the Abu Dhabi National Energy Company (TAQA) have successfully completed the acquisition of an 875-megawatt (MW) combined-cycle gas-fired power plant at the Talimarjan Power Complex in southern Uzbekistan.
This acquisition is part of Uzbekistan’s broader strategy to privatise its energy sector and introduce global expertise into its expanding power market. Each company now holds a 40% stake in the plant, officially known as Talimarjan Power Plant 1 (TPP1). The remaining 20% is owned by JSC Talimarjan Issiqlik Elektr Stansiyasi (TIES), a local energy entity.
Strengthening UAE-Uzbekistan Energy Ties
The acquisition supports a strategic energy partnership between the governments of the United Arab Emirates and Uzbekistan. The newly formed Talimarjan Power Plant 1 project company and Talimarjan Operations & Maintenance LLC, which handles day-to-day plant operations, represent a joint UAE-Uzbekistan energy initiative built on shared growth goals.
The deal also includes a 25-year Power Purchase Agreement (PPA) with JSC Uzenergosotish (UES), which succeeded the National Electric Grid of Uzbekistan. This long-term agreement ensures financial stability and continuous operation of the gas-fired power plant.
Boosting Energy Capacity in a Growing Market
Uzbekistan, with its rapid population and economic growth, faces rising demand for reliable and efficient power. The TPP1 plant will play a key role in delivering affordable and secure energy to homes, businesses, and industries across the country.
The gas-fired plant uses combined-cycle technology, making it one of the more efficient and cleaner-burning fossil fuel options, aiding Uzbekistan’s transition toward cleaner energy without compromising supply.
Mubadala’s Global Decarbonisation Mission
According to Hammad Rahman, head of Asia Pacific infrastructure at Mubadala, the company is committed to helping countries meet growing energy needs while lowering carbon emissions.
“Efficient natural gas-fired powered plants such as TPP1 will play an important part in enabling the transition to cleaner sources of energy,” said Rahman.
He also emphasised that Mubadala’s global strategy aligns with supporting emerging markets like Uzbekistan by bringing in investment, knowledge-sharing, and energy innovation.
TAQA’s Vision for 2030
TAQA, one of the leading utility companies in the Middle East, is expanding rapidly. By 2030, TAQA aims for a total power generation capacity of 150 gigawatts (GW), with 100 GW coming from renewables through its strategic stake in Masdar.
Frank Possmeier, Chief Investment Officer for TAQA’s generation division, highlighted the company’s focus on low-carbon and efficient power:
“TAQA is pleased to collaborate with Mubadala and TIES in acquiring this vital asset that plays a crucial role in Uzbekistan’s journey towards a privatised energy sector,” Possmeier stated.
Economic and Social Impact of the Acquisition
The Mubadala and TAQA acquisition also brings a significant boost in foreign direct investment (FDI) to Uzbekistan’s energy market. This supports local infrastructure development, enhances technical training, and fosters socioeconomic growth.
Through capacity building and knowledge exchange, this initiative aims to empower the local workforce while ensuring smooth, modern operation of the power plant. It reflects a shared UAE-Uzbekistan ambition to promote energy access and reliability.
Strategic Importance of the Talimarjan Power Complex
Located in southern Uzbekistan, the Talimarjan Power Complex is one of the country’s most critical energy hubs. It provides stable electricity to millions and serves as a foundation for future expansion in the region’s power generation infrastructure.
With new ownership from global energy leaders, the plant is expected to set a benchmark for efficient operations and sustainability in Central Asia.
Conclusion: A Win-Win for All Stakeholders
As Mubadala and TAQA acquire 875MW gas-fired power plant in Uzbekistan, the deal becomes a symbol of international collaboration and forward-thinking energy policy. It benefits not just the companies involved but also the people of Uzbekistan, promising cleaner, more reliable, and economically sound energy solutions.
From decarbonisation goals to economic upliftment, this acquisition marks a strategic milestone in shaping the future of energy in Central Asia.
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