ACWA Power has signed agreements with Uzbekistan’s Ministry of Energy including one to build a 1500MW onshore wind farm.
The agreements were signed during the state visit to Saudi Arabia, of Uzbekistan’s President, Shavkat Mirziyoyev.
The signings are for a heads of terms agreement to develop a 1.5GW wind farm in the Karakalpakstan region of Uzbekistan, a plan for investment in green hydrogen, in Uzbekistan, in collaboration with Air Products and a $10bn investment cooperation agreement (ICA) to jointly develop gas-to-power, renewable energy, and green hydrogen projects in Uzbekistan.
Azim Akhmedkhodjaev, First Deputy Minister of Energy of Uzbekistan, said: “We have outstanding partners in ACWA Power, which is already implementing four energy projects in Uzbekistan, meaning these new ventures are based on a strong foundation of partnership and trust.
“I would like to thank our President, Shavkat Mirziyoyev, for his vision and drive to ensure these agreements were expedited, and also to ACWA Power and Saudi Arabia’s Ministry of Energy – for their continued best-in-class execution and partnership with Uzbekistan.”
The 1.5GW Karakalpakstan wind project’s heads of terms agreement is a foundation for a power purchase agreement and an investment agreement, to be initiated for the facility.
The project is expected to achieve financial close by the end of 2023 and be fully commissioned by the first quarter of 2026.
The green hydrogen agreement with Air Products follows an MoU signed during the visit of a Saudi Arabian delegation to Uzbekistan in January 2021.
The ICA outlines projects in gas-to-power, wind, hydroelectric and green hydrogen valued at $10bn over a five-year period, starting in 2023.
The initiatives will materially contribute to Uzbekistan’s long-term strategy to diversify its energy mix, as it targets 8GW and 12GW of solar and wind capacity by 2026 and 2030, respectively.