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ACWA Power to Develop Three Power Projects in Uzbekistan

Saudi ACWA Power-generating windmills are pictured in Jbel Sendouq, on the outskirts of Tangier, Morocco, on June 29, 2018. REUTERS/Youssef Boudlal/File Photo
Saudi ACWA Power-generating windmills are pictured in Jbel Sendouq, on the outskirts of Tangier, Morocco, on June 29, 2018. REUTERS/Youssef Boudlal/File Photo
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ACWA Power to Develop Three Power Projects in Uzbekistan

Saudi ACWA Power-generating windmills are pictured in Jbel Sendouq, on the outskirts of Tangier, Morocco, on June 29, 2018. REUTERS/Youssef Boudlal/File Photo
Saudi ACWA Power-generating windmills are pictured in Jbel Sendouq, on the outskirts of Tangier, Morocco, on June 29, 2018. REUTERS/Youssef Boudlal/File Photo

Uzbekistan and Saudi Arabia have planned three major power projects that will promote the use of clean and renewable energy in the Central Asian country.

Following the agreements signed in March 2020, cooperation between the Uzbekistan Ministry of Energy, the Ministry of Investment and Foreign Trade, and the Saudi company ACWA Power have led to three major milestones in the development of power projects, which are Uzbekistan’s ambitious energy Capacity by 2500MW to enable the transformation plan and increase energy, the Uzbek Ministry said in a press release.

The ground-breaking ceremony of the 1500MW Shirdia CCGT plant, followed by the signing of two Power Purchase Agreement and Investment Agreement for two wind power plants located in Bukhara and Navoi, was held in the presence of Deputy Prime Minister and Minister of Investments and Foreign Trade Sardor Umurzakov, Energy Minister Alisher Sultanov, as well as a Saudi Arabian delegation led by Saudi Minister of Investment Khalid al-Falih, and Saudi Ambassador to Uzbekistan Hisham Mishal Al- Suwailem.

ACWA Power will deliver these three projects using its technical knowledge, expertise, and experience, contributing directly to meeting Uzbekistan’s growing annual electricity demand that is expected to reach 110 billion kWh by 2030.

Saudi Minister of Investment Khalid al-Falih said the projects, which have an estimated total investment value of USD2.5 billion, will contribute directly to the growth of power generation capacity in Uzbekistan to keep pace with an increasing demand that is expected to reach 18 gigawatts/h by 2030.

Falih said that Saudi Arabia has a long history and a leading global position in the field of energy, pointing out that renewable energy in the Kingdom today has ambitious programs and a promising future, especially in light of rich resources in solar energy, wind energy, and competing expertise to develop these programs.

This is embodied in enabling the renewable energy sector, within its national energy mix, as it aims to raise the level of electricity production using renewable energy by 50 percent in 2030, while the remaining percentage will depend on gas production, according to the minister.

Falih pointed out that Saudi Arabia has ambitious plans in many other fields of renewable energy, as it launched, during the past year, several projects and initiatives in this context, including The Green Hydrogen Production Project in NEOM.

The Kingdom, as part of its interest in sustainable development, also initiated the circular carbon economy approach, which was endorsed by the leaders of the G20 countries, and represents a comprehensive, integrated and realistic approach to managing emissions that contribute to global warming, as well as its possible application in line with each country's priorities and circumstances.

For his part, Sultanov said that increasing Uzbekistan’s clean energy capacity includes a number of development and investment targets.

“By executing our plans efficiently, we will only attract more investment to Uzbekistan, and improve the energy situation of our country. The ministry extends its deepest thanks to ACWA Power and the extensive Saudi delegation to make this victory. We look forward to a long and fruitful work, "he said.

ACWA Power is also committed to training and upskilling 1000 local employees in Uzbekistan during the project’s construction and operation phases, generating long-term socio-economic value through knowledge sharing and job creation.

Mohammad Abunayyan, chairman of ACWA Power, said: “As a proud Saudi company, we are privileged to play a vital role in supporting Uzbekistan’s decarbonization efforts and energy transformation, stemming from the international cooperation between Saudi Arabia and Uzbekistan under their progressive and visionary leadership."

"Through the addition of new renewable energy capacity, exploration of innovative technologies and the advancement of cleaner, more efficient and cost-competitive gas power, ACWA Power is expanding its presence in Uzbekistan, a high growth market, leveraging our global expertise and technical know-how to create long-term and sustainable value for the country’s local communities,” Abunayyan added.

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China’s Economy Set to Slow in Q2 as Pressure from US Tariffs Mounts

A laborer works on the glass wall of a building near a luxury brand logo in Beijing, China, Friday, July 11, 2025. (AP)
A laborer works on the glass wall of a building near a luxury brand logo in Beijing, China, Friday, July 11, 2025. (AP)
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China’s Economy Set to Slow in Q2 as Pressure from US Tariffs Mounts

A laborer works on the glass wall of a building near a luxury brand logo in Beijing, China, Friday, July 11, 2025. (AP)
A laborer works on the glass wall of a building near a luxury brand logo in Beijing, China, Friday, July 11, 2025. (AP)

China's economy is likely to have cooled in the second quarter after a solid start to the year, as trade tensions and a prolonged property downturn drag on demand, raising pressure on policymakers to roll out additional stimulus to underpin growth.

The world's No. 2 economy has so far avoided a sharp slowdown in part due to a fragile US-China trade truce and policy support, but markets are bracing for a weaker second half as exports lose momentum, prices continue to fall, and consumer confidence remains low.

Data due Tuesday is expected to show gross domestic product (GDP) grew 5.1% year-on-year in April-June, slowing from 5.4% in the first quarter, according to a Reuters poll. The projected pace would still exceed the 4.7% forecast in a Reuters poll in April and remains broadly in line with the official full-year target of around 5%.

"While growth has been resilient year-to-date, we still expect it to soften in the second half of the year, due to the payback of front-loaded exports, ongoing negative deflationary feedback loop, and the impact of tariffs on direct exports to the US and the global trade cycle," analysts at Morgan Stanley said in a note.

"The third-quarter growth could slow to 4.5% or lower, while Q4 faces unfavorable base effect, putting the annual growth target at risk," the analysts said. They expect Beijing to introduce a 0.5-1 trillion yuan ($69.7 billion-$139.5 billion) supplementary budget from late in the third quarter.

China's exports regained some momentum in June while imports rebounded, as factories rushed out shipments to capitalize on a fragile tariff truce between Beijing and Washington ahead of a looming August deadline.

GDP data is due on Tuesday at 0200 GMT. Separate data on June activity is expected to show both industrial output and retail sales slowing.

On a quarterly basis, the economy is forecast to have expanded 0.9% in the second quarter, slowing from 1.2% in January-March, the poll showed.

China's 2025 GDP growth is forecast to cool to 4.6% - falling short of the official goal - from last year's 5.0% and ease even further to 4.2% in 2026, according to the poll.

BALANCING ACT

Investors are closely watching for signs of fresh stimulus at the upcoming Politburo meeting due in late July, which is likely to shape economic policy for the remainder of the year.

Analysts polled by Reuters expect a 10-basis point cut in the seven-day reverse repo rate - the central bank's key policy rate - in the fourth quarter, along with a similar cut to the benchmark loan prime rate (LPR).

Beijing has ramped up infrastructure spending and consumer subsidies, alongside steady monetary easing. In May, the central bank cut interest rates and injected liquidity as part of broader efforts to cushion the economy from US President Donald Trump's trade tariffs.

But China observers and analysts say stimulus alone may not be enough to tackle entrenched deflationary pressures, with producer prices in June falling at their fastest pace in nearly two years.

Expectations are growing that China could accelerate supply-side reforms to curb excess industrial capacity and find new ways to boost domestic demand.

It's a stiff challenge, analysts say, as Chinese leaders face a delicate balancing act in their quest to cut production while maintaining employment stability in the face of a worsening labor market outlook.