Saudi Arabia’s ACWA Power has signed an implementation agreement with Uzbekistan’s Ministry of Investments and Foreign Trade and Ministry of Energy for a wind power project.
The company will develop, build and operate the 1,500MW project in Karakalpakstan, Uzbekistan.
Once operational, the project will become the largest wind farm in the Central Asian region, and one of the largest in the world.
The agreement was signed by Ayad al-Amri, Executive General Manager of Business Development in ACWA Power, and Sherzod Khodjaev, Deputy Minister at the Uzbekistan Ministry of Energy, and Shukhrat Vafaev, Deputy Minister of Investment and Foreign Trade.
The signing ceremony was attended by Saudi Minister of Energy Prince Abdulaziz bin Salman, Uzbekistan’s Deputy Prime Minister and Minister of Investments and Foreign Trade Sardor Umurzakov, Chairman of ACWA Power Mohammad Abunayyan, Director of local investment at the Public Investment Fund Yazeed al-Humaid, as well as Saudi and Uzbekistani officials.
The project aims to bolster the Uzbekistan government’s efforts to diversify the country’s energy mix and increase its renewable energy capacity in line with recent strategic reforms.
The announcement follows the signing of Power Purchase Agreements (PPA) and Investment Agreements for two wind power projects in Bukhara and Navoi, concluded earlier this year with an aggregate power generation capacity of 1,000 MW.
ACWA Power also has a 1,500 MW high efficiency gas fired power project under construction in Sirdarya, Uzbekistan.
“We value our partnership with ACWA Power and welcome this expansion, which will be the largest facility of its kind in the Central Asian region once commissioned,” said Umurzakov.
“This project will contribute to the implementation of our national renewable energy target of bringing the total renewable power generation capacity to 25 percent by 2030,” he added.
Commenting on the project, Uzbekistan’s Energy Minister Alisher Sultanov said: “As an energy producer, we in Uzbekistan are learning much from our Middle Eastern, especially Saudi, partners as we navigate the transition to a low-carbon economy.”
“We are delighted to finalize the implementation agreement for the 1,500MW Karakalpakstan wind farm, which would expand our international cooperation and continued partnership aimed at accelerating Uzbekistan’s energy transition,” said Abunayyan.
The project is expected to meet the power needs of approximately four million households and offset approximately 2.5 million tons of carbon dioxide per year, contributing directly to the government’s goal to generate 30 percent of Uzbekistan’s power capacity from renewable sources by 2030.
It further targets meeting growing yearly electricity demand, efficiently and sustainably.