Saudi Arabia's ACWA Power Strikes USD 4.85 Billion Deal for Uzbekistan Wind Farm
Saudi Arabia's ACWA Power Strikes USD 4.85 Billion Deal for Uzbekistan Wind Farm

Saudi Arabia is set to make a significant investment in Uzbekistan, a Central Asian hub, as part of a groundbreaking deal worth $4.85 billion. ACWA Power, a Saudi company, has inked a Power Purchase Agreement (PPA) with Uzbekistan's National Electric Grid for what will become Central Asia's largest wind farm, known as the Aral 5GW Wind Independent Power Producer (IPP) project. This venture is situated in the Karakalpakstan region.

The agreement was formalized during the Tashkent International Investment Forum, graced by the presence of Uzbek President Shavkat Mirziyoyev. Alongside Uzbek Prime Minister Abdulla Aripov and Saudi Energy Minister Prince Abdulaziz bin Salman Al Saud, the deal was signed during a ceremony that also marked the inauguration of two ongoing projects by ACWA Power in Uzbekistan: the 1.5GW Sirdarya CCGT plant and the initial 100MW phase of the Riverside solar plant in the Tashkent region.

Mirziyoyev, underscoring Uzbekistan's push towards renewable energy, attended the ceremony.

For ACWA Power, this marks its 15th project in Uzbekistan, showcasing the company's dedication to supporting the nation's ambitious goal of having 40% of its energy from renewable sources by 2030. Uzbekistan stands as ACWA Power’s second-largest market after Saudi Arabia, with this latest investment bringing its total commitment to the country to $13.9 billion.

Mohammad Abunayyan, Founder and Chairman of ACWA Power, hailed the project as historic, emphasizing its capacity to provide clean energy to around 4.5 million households in Uzbekistan. He lauded Uzbekistan's leadership for driving forward its energy transition agenda and expressed pride in collaborating with the government to extend their low-carbon expertise.

The Aral Wind IPP will roll out in five phases, with the ambitious project expected to generate approximately 18,500 GWh of clean electricity annually. This effort is projected to displace 247 billion tons of CO2 over its lifetime and provide power to roughly four million homes, marking a significant milestone in Uzbekistan's journey towards green energy.

Moreover, the project is anticipated to create numerous job opportunities, both directly and indirectly, and boost local industries through the localization of services and supplies.

ACWA Power, renowned as the world’s largest private water desalination company, is at the forefront of the energy transition. Their portfolio in Uzbekistan now comprises 11.6GW of power, with 10.1GW coming from renewable sources. Additionally, the company is spearheading Uzbekistan’s first green hydrogen project, with an initial capacity of 3,000 tons per year, with the first phase inaugurated in November 2023.

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