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.
