Barakah One Company signs power purchase agreement with Abu Dhabi Water and Electricity Company.
The Barakah One Company, a subsidiary of the Emirates Nuclear Energy Corporation (ENEC) and the Korea Electric Power Corporation (KEPCO), has announced a deal for the purchase of electricity generated at the under-construction plants in Abu Dhabi.
The power purchase agreement has been signed with the Abu Dhabi Water and Electricity Company (ADWEC), a statement said. The agreement establishes the contractual framework between the two entities for nuclear-generated safe, clean, efficient and reliable electricity produced at Barakah, it added. The electricity produced by the four Barakah units is expected to play a strategic role in powering the growth of the UAE while reducing greenhouse gas emissions.
Khaldoon Al Mubarak, chairman of ENEC, said: “Today is another major step towards diversifying the UAE’s energy mix and making the nation more energy secure and environmentally sustainable. The Barakah Plant will soon provide the nation with the clean energy it needs to grow, through an established, robust and technologically advanced nuclear energy industry.” Abdullah Musleh Al Ahbabi, ADWEA chairman, added: “The signing of this agreement shows the ongoing transformation of Abu Dhabi’s energy mix. Securing energy from a variety of sources allows us to provide Abu Dhabi with the supply of power and water it needs to sustain its growing economy.”
In October, ENEC and KEPCO announced the establishment of Barakah One, an independent subsidiary owned by both companies, which is mandated to represent the commercial and financial interests of the Barakah project. Under the JV deal, KEPCO owns an 18 percent stake in Barakah One, with ENEC as the majority owner of the remaining 82 percent.
The four units of the Barakah Nuclear Energy Plant are scheduled for completion in 2020, with construction having started in 2012. With four reactors online, the facility will deliver up to a quarter of the UAE’s electricity needs and save up to 12 million tons in carbon emissions every year. The project at Barakah is progressing steadily. Overall, construction of Units 1 to 4 is now more than 72 percent complete. Sources: Arabian Business, The National UAE, Agencies.