TAQA’s Global Expansion in Sustainable Infrastructure: A Strategic Play on Green Hydrogen, Water Security, and the Energy Transition
3min read The global shift toward decarbonization and water security is fueling a multitrillion-dollar opportunity for firms positioned at the nexus of renewable energy, sustainable water management, and government-backed infrastructure. Among them, TAQA Group, the UAE-based energy giant, is emerging as a leading player in this transformation. With over AED75 billion ($20.5 billion) allocated to energy transition projects through 2030, TAQA’s strategic diversification into high-growth sectors like green hydrogen, water treatment, and low-carbon power—anchored by landmark partnerships in Morocco and Uzbekistan—positions it as a must-watch investment for the energy transition era.
Morocco: Green Hydrogen and Cross-Border Power at Scale
TAQA’s AED52 billion ($14.2 billion) Moroccan deals mark its boldest move yet into green hydrogen and renewable energy exports. In partnership with Saudi Arabia’s ACWA Power and UK firm Xlinks, TAQA is developing projects that will redefine Morocco’s role as a regional renewable energy hub.
A standout is the Xlinks Morocco-UK Power Project, a GBP24 billion ($27.6 billion) venture that will transmit 3.6 GW of solar and wind energy from Morocco’s Tan-Tan province to the UK via subsea cables by the early 2030s. TAQA’s £25 million ($29.2 million) investment here underscores its vision to monetize cross-border energy trade—a sector set to boom as nations race to meet net-zero targets.
Meanwhile, TAQA’s collaboration with Spain’s Cepsa in Morocco’s southern province aims to produce green ammonia and synthetic fuels using renewable energy, aligning with Morocco’s MAD319 billion ($32 billion) hydrogen initiative. These projects not only boost Morocco’s renewable capacity to 12,900 MW by 2030 but also position the country as a green hydrogen exporter—a market BloombergNEF estimates could reach $1.7 trillion by 2050.
Uzbekistan: Water Security as a Growth Engine
In Uzbekistan, TAQA is tackling water scarcity head-on. The $544 million (AED2 billion) New Tashkent City water infrastructure project—a 65-km raw water transmission pipeline and state-of-the-art treatment plant—will supply 2 million residents with clean water while generating 20 MW of hydropower. This venture, partnered with the New Tashkent City Directorate, exemplifies TAQA’s focus on regulatory-backed, cashflow-stable assets critical to Uzbekistan’s urban expansion.
The project’s 500,000+ cubic meters/day capacity and advanced treatment technology (meeting international standards) reflect TAQA’s technical prowess. Crucially, it aligns with Uzbekistan’s 2030 water security goals and the UAE’s Water Security Strategy 2,036, which prioritizes global leadership in sustainable water management.
UAE: The Anchor of Financial Resilience
TAQA’s home market dominance in the UAE remains its financial bedrock. With AED9.2 billion ($2.5 billion) in 2024 capex, the firm is expanding regulated transmission and distribution (T&D) assets, which provide steady cash flows insulated from commodity price swings. Its 49% stake in Masdar, the UAE’s renewables flagship, further cements its role in projects like Abu Dhabi’s giga-scale solar-battery hybrids, which combine solar power with 22.5 GWh battery storage—a model poised to replicate globally.
Partnerships as a Multiplier
TAQA’s success hinges on its strategic alliances with firms like ACWA Power (hydrogen) and EWEC (UAE’s energy champion), which de-risk projects and amplify scale. The Xlinks venture, for instance, leverages ACWA’s expertise in power generation and TAQA’s balance sheet strength, creating a template for global replication.
Why TAQA Now?
- Tailwinds from Policy: The UAE’s Net Zero by 2050 initiative and global carbon pricing regimes are accelerating demand for green energy and water solutions.
- Scalable Asset Base: TAQA’s AED50 billion ($13.7 billion) of EU taxonomy-compliant projects ensure alignment with institutional investor ESG mandates.
- Debt Discipline: With a Fitch AA rating and conservative leverage, TAQA is financially equipped to capitalize on opportunities without diluting shareholder returns.
Conclusion: A Decade-Long Growth Story
TAQA is not just a utility—it’s a global infrastructure builder capitalizing on two unstoppable trends: the energy transition and water security. Its Moroccan hydrogen exports, Uzbekistan’s water projects, and UAE’s regulated assets form a diversified portfolio primed to deliver sustained growth. For investors seeking exposure to the $131 trillion global infrastructure market—a third of which will focus on sustainability by 2030—TAQA’s valuation at 6.8x 2025E EV/EBITDA offers compelling entry points.
The energy transition isn’t a fad—it’s the future. TAQA is building it.
