About ENEC Commercial
ENEC Commercial (formerly known as Barakah One Company) manages the financial and commercial interests of the Barakah Nuclear Energy Plant, driving excellence in these areas through building and maintaining strong strategic relationships to ensure safe, sustainable and efficient operations.
Launched in 2016 as a joint venture between ENEC and Korea Electric Power Corporation (KEPCO), ENEC Commercial manages the project financing, with the plant financed through a combination of debt and equity. ENEC Commercial holds the Power Purchase Agreement (PPA) with Emirates Water & Electricity Company (EWEC), signed in 2016, to receive funds for the electricity generated from Units 1 to 4 in Barakah. ENEC Commercial manages the sale of electricity generated at the Barakah Plant. ENEC Commercial also holds the generation license with the Department of Energy.
ENEC owns 82% of ENEC Commercial, with KEPCO holding 18%.
In October 2016, ENEC and KEPCO announced the financial close of the Barakah project. The support from credit agencies and commercial banks to the program is a reflection of the robust project management and quality of the program.
As announced, the overall project financing requirements are estimated at US$ 24.5 billion, whereas:
- US$ 19 billion are provided as a direct loan from the Government of Abu Dhabi
- US$ 2.5 billion are provided as a direct loan from KEXIM
- US$ 250 million in loan agreements with five local and international commercial banks.
- A total of US$ 4.7 billion in equity commitments for the establishment of the Barakah One Project Joint Venture Company in exchange for equity interest in the company, shared between ENEC and KEPCO.
In July 2023, ENEC Commercial has refinanced the full outstanding balance under the loan facilities extended by the Export-Import Bank of Korea (KEXIM). The KEXIM loan facilities have been refinanced through a competitive market process resulting in the selection of two leading Emirati banks, Abu Dhabi Commercial Bank PJSC (ADCB) and First Abu Dhabi Bank (FAB).
This robust project finance framework enables ENEC Commercial to manage the commercial interests of the Barakah Plant, contracting ENEC Operations to operate and maintain the four units of the Barakah plant.
Also in October 2016, ENEC Commercial and ADWEC, which has since become the Emirates Water and Electricity Company (EWEC), announced the Power Purchase Agreement (PPA), which agrees the price-per-kilowatt structure of the electricity produced by Barakah Units 1 to 4. The PPA is a significant commercial milestone for the Barakah Plant, agreeing the price at which the electricity produced at the Barakah Plant is sold to the grid.