TRANSCO’s core business is the planning, construction, and operation of the water and electricity transmission network within Abu Dhabi and, where required, the UAE. In addition to meeting the current demand for water and electricity transmission TRANSCO must ensure the availability of appropriate infrastructure necessary to service future demand.

TRANSCO is responsible for reliably, securely and safely transmitting water and electricity from the water and electricity producers (IWPPs) to the distribution networks operated by Abu Dhabi Distribution Company (ADDC) and Al Ain Distribution Company (AADC).

To execute this responsibility, TRANSCO maintains and operates a network of transmission assets, including the Load Despatch Centre and undertakes the management of all planned and unplanned maintenance activities.

ADWEC, a separate operating company within the ADWEA group, is responsible for developing water and electricity demand forecasts. TRANSCO’s role is to translate these forecasts into network development plans and then to manage the projects required to meet the plan in close cooperation and coordination with ADDC and AADC.

TRANSCO has taken a leading role in supporting the development of the ADNOC group of companies (ADCO and GASCO) and other significant industries in Abu Dhabi such as aluminum and steel by significantly expanding its water and power networks to ensure the future availability of necessary power and water supplies to supply forecast future sector demand. This service not only gives the oil industry a secure, reliable and economic energy supply but benefits the industrial sector and national economy through the use of energy efficient water and power generating equipment.

The scope of TRANSCO’s business has recently expanded to include the planning, development and operation of water and electricity transmission assets in the northern Emirates. TRANSCO also contributes to the operation of the Emirates National Grid which we expect to develop significantly over the next 3 – 5 years. Thirdly, TRANSCO is also closely involved in the planning and development of an interlinked transmission grid with the other Gulf States.

In line with the business philosophy of the whole ADWEA Group, the business philosophy of TRANSCO is to use best modern international business practices to achieve its goals and the following specific objectives:



TRANSCO’s corporate strategy is focused on the core business of developing and sustaining the provision of region leading standards of transmission services within Abu Dhabi and the UAE. In most developed economies, such as those of Western Europe and the USA, the growth rate in the demand for electricity and water is low, typically 1% to 2% per year. This is not sufficient to generate the attractive rates of growth in corporate earnings demanded by shareholders of fully privatized utilities and therefore the companies in these markets tend to focus their corporate strategy on seeking non-core sources of growth and developing new, but potentially more risky, business models. This is not the case for TRANSCO – TRANSCO’s power business is forecast to grow by 15% per year over the coming five years, while the water business is forecast to grow by 6%. This has two major implications:

a) There is no need to aggressively pursue new sources of growth;
b) The growth in the core business will be so rapid that the management and organizational capability of TRANSCO will be fully engaged in executing these development plans and therefore there will be limited capacity to engage in attempting major new growth strategies.

TRANSCO’s network strategy can therefore be summarized as focusing on network strategy and performance:

The only significant area for the development of new business for TRANSCO will be the expansion of TRANSCO’s role in supporting the development and operation of transmission networks in the northern Emirates. This role complements TRANSCO’s focus on the core business in Abu Dhabi by: New ventures are not a major focus of TRANSCO corporate strategy. However TRANSCO has approved and is pursuing the development of a telecommunications infrastructure services business in Abu Dhabi and the broader UAE. This business leverages TRANSCO’s existing transmission network infrastructure and positions the company for longer-term growth, but it is not a major focus area at a Corporate level for the next five year period.