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Taqa Morocco consolidates its business model

The Taqa group could not have hoped for better with the extension for 17 additional years (from 2027 to 2044) of the electric power supply contract with the Moroccan National Office for Electricity and Drinking Water (ONEE). The deal particularly concerns the supply of units 1 to 4, in order to align the duration with that of units 5 and 6 of the Jorf Lasfar thermal complex.

The extension of the contract is part of the memorandum of understanding concluded between the two parties, on May 12, 2009, concerning the terms of development of units 5 and 6, it said at Taqa Morocco. The project to extend the electric power supply contract with the One is an important investment which contributes to the economic development of Morocco.

The challenges are of several orders, on the one hand operational: aligning the two PPPs will consolidate the existing synergies between the 6 units in terms of operation and technical expertise to guarantee a competitive base load and contribute to energy security from the country.

In addition, “this alignment of conract confirms the visibility and long-term predictability of the Taqa Morocco business model to invest in development projects that will accompany the energy transition in Morocco and the diversification of the portfolio in Africa,” explains management.

The industrial infrastructure of six units totals 2,056 megawatts thus helping to meet more than 40% of Morocco’s electricity needs. As of September 30, Taqa Morocco achieved consolidated sales of MAD 6.9 billion, up 7.5% compared to the end of September 2018. This change is explained by “the combined effect of the good operational performance of units 1 to 6 and the increase in energy costs following the evolution of the purchase price of coal on the international market”.

Other challenges: the pursuit of operating synergies between the six units as well as capitalization on the technical know-how of the teams to continue to guarantee a competitive base load. The goal is energy security in Morocco, which records an average increase in electricity demand of around 5% per year.

The extension of the conract to Morocco testifies to the strong expertise and technical capacities available to the group, which continues to explore opportunities in the electricity and water sector. Founded in 2005, Taqa is a diversified international energy group headquartered in Abu Dhabi.

The group invests in electricity production, water desalination, oil and gas exploration and production, pipelines and gas storage. “In addition to the wind project in the Tétouan region, other projects under study will be the subject of a specific communication,” announced the group.

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