Core Business
The Transmission & Despatch of Water & Electricity
Servicing current demand
TRANSCO is responsible for the safe, secure and reliable transmission of water and electricity from the producers (Independent Water and Power Producers - IWPPs) to the distribution networks operated by Abu Dhabi Distribution Company (ADDC) and Al Ain Distribution Company (AADC).

To execute this responsibility efficiently & effectively, TRANSCO maintains and operates a network of transmission assets, including operation of the Load Despatch Centre and management of planned and unplanned maintenance activities on the assets.

Servicing future demand
TRANSCO’s core business is the planning, construction, and operation of the Abu Dhabi water and electricity transmission network. TRANSCO's responsibilities include servicing current demand for water and electricity transmission and building the appropriate infrastructure to service future demand.

ADWEC, a separate operating company within the ADWEA group, is responsible for developing water and electricity demand and generation forecasts – TRANSCO's role is to translate these forecasts into network development plans and then to manage the set of projects required to meet the plan requirements.

Services outside of Abu Dhabi Emirate
The scope of TRANSCO's business has expanded to include assisting in the planning, development and operation of water and electricity transmission assets in some of the northern and western geographic area of the United Arab Emirates.

TRANSCO is also closely involved in the process of planning inter-connections with other Gulf states wherever required

Strategy Statement
In line with the business philosophy of the whole ADWEA Group, the business philosophy of TRANSCO is to use the best modern international business practices to achieve its goals.

Development of the core transmission business, Abu Dhabi
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 forecasted to grow by 10% per year over the coming five years, while the water business is forecasted 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.

Network strategy and performance
TRANSCO will ensure high availability of its equipment and networks in order to support the customer power and water demand. The level of availability is agreed with the Regulator and in line with best international practice.

Besides the availability, TRANSCO will do its utmost to meet its annual targets in terms of incident numbers, duration and energy lost. Network Services will benchmark its performance (in both Power and Water) against international utilities to maintain focus on organizational performance.

In fulfilling its obligations towards the quality and security of supply, Network Services will be cost focused on the utilization of its resources through the optimal scheduling and up-skilling of staff in line with maintenance requirements and business development needs.

Development of transmission business, outside the Emirate of Abu-Dhabi
Significant areas 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 across the UAE where needed, most notably in the northern and western geographic area of the United Arab Emirates. This role complements TRANSCO’s focus on the core business in Abu Dhabi by:
  1. Improving overall security of the Emirates National Grid and thereby reducing the risk to TRANSCO of shortages and/or network security issues across the UAE;
  2. Contributing to the fulfilment of TRANSCO’s community and reputation objectives by supporting the development of core utility infrastructure in all places where TRANSCO is involved;
  3. Providing new sources of revenue.
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.