Mubadala and TAQA acquire 80% stake in Uzbekistan’s Talimarjan Power Plant

Abu Dhabi’s sovereign investment fund Mubadala and the national energy company TAQA have completed the acquisition of stakes in Uzbekistan’s Talimarjan Thermal Power Plant, Gulf Business reports.

A special project company, Talimarjan Power Plant 1, was established for the plant’s privatization. Both UAE-based investors now hold 40% shares in the company, while the remaining 20% stake is owned by the Uzbek side through the joint-stock company “Talimarjan TPP.” The same ownership structure applies to the plant’s operator, Talimarjan Operations & Maintenance.

The privatization deal for the thermal power plant was initially signed in September 2022. As part of the agreement, the UAE investors pledged to invest $240 million into the plant’s development and cover approximately $700 million of its debt.

In addition, the investors signed a 25-year power purchase agreement with the state-owned company “Uzenergosotish.” The publication highlights the growing “strategic partnership” between Uzbekistan and the UAE in the energy sector.

TAQA’s Investment Director Frank Possmeier described the deal as “a key step” in Uzbekistan’s energy sector privatization. He noted that the company’s expertise in low-carbon and water-efficient power generation would help Uzbekistan meet its electricity needs.

In November 2022, Uzbekistan also signed an agreement with Spain’s INTECSA and Japan’s Mitsubishi to construct two new combined-cycle power units with a capacity of 900 MW at the Talimarjan plant. Construction began in July 2023, with the project valued at $771.8 million.