Saudi’s ACWA Power to build $2.5bn Uzbekistan renewable energy plants
ACWA Power will build a 1,500MW CCGT power plant, a 500MW-1000MW wind power plant, and a training centre
Saudi Arabia-based developer and operator of power generation and water desalination projects ACWA Power has inked three strategic agreements, worth up to $2.5bn, with Uzbekistan’s Ministry of Energy to amplify power generation and develop technical expertise in the nation.
The first strategic deal comprised a 25-year power purchase agreement (PPA) and investment agreement – valued at $1.2bn – which includes the development, construction, and operation of a 1,500MW combined cycle gas-turbine (CCGT) power plant.
The project will be located in the Shirin City of the Sirdarya region and will be developed as a build-own-operate-transfer (BOOT) project. ACWA Power will take the lead in constructing, engineering, operating, and maintaining the plant.
The 1500MW CCGT power plant is expected to contribute to Uzbekistan’s plan to attract foreign direct investment in essential key sectors and implement its energy diversification strategy.
JSC National Electric Grids of Uzbekistan will act as the sole off-taker. The CCGT plant’s efficiency rate is expected to be in excess of 60% -- saving almost twice the natural gas currently used for electricity production.
In addition, the Uzbekistan ministry and ACWA Power have inked a second agreement – an implementation agreement worth $550m - $1.1bn – for the construction of 500MW-1000MW wind power plants.
Second agreement includes a US$550 million-US$1.1 billion wind power plant with a generation capacity that ranges between 500-1000 MW. The plant is set to harness Uzbekistan’s natural renewable energy sources. pic.twitter.com/M9SlTKSAXf— ACWA Power (@ACWAPower) March 8, 2020
The Uzbekistan ministry and ACWA Power have also signed a memorandum of understanding (MoU) for the development of a training centre aimed at enhancing the technical skills of Uzbek students and professionals.
Third agreement is an MoU between the Ministry of Energy of Uzbekistan, Air Products & Chemicals and ACWA Power to launch training programs that bolster the technical expertise of students and professionals at one or more colleges in Uzbekistan. pic.twitter.com/RpcvjYZyM5— ACWA Power (@ACWAPower) March 8, 2020
The agreements reflect Uzbekistan’s growing role in the global energy market, its commitment to energy security, and the use of the latest technologies.
Commenting on the agreements, the Prime Minister of Uzbekistan, Abdulla Aripov, said: “With infrastructure development key to our economic progress, we want the best international expertise to support our ambitious energy goals. We have chosen ACWA Power to be the government’s partner in upscaling Uzbekistan’s energy generation capacity because of their exceptional track record in delivering results.”
Uzbekistan’s Minister of Energy, Alisher Sultanov, added: “ACWA Power’s focus on smart, energy efficient technologies will provide more than 2,000MW of added power and enable us to achieve a more sustainable, secure, and affordable energy ecosystem for our country.”
The chairman of ACWA Power, Mohammad Abunayyan, concluded that the agreements inked with the Uzbek government will contribute to creating job opportunities, developing community, and achieving a sustainable future for the country.