JEDDAH: Saudi utility giant ACWA Power launched three renewable projects in Uzbekistan, including wind, solar, and battery storage, marking a $3 billion investment in the country鈥檚 energy transition.
On Dec. 18, Uzbekistan鈥檚 President Shavkat Mirziyoyev and the Kingdom鈥檚 Minister of Energy, Prince Abdulaziz bin Salman, who joined virtually, inaugurated the projects.
The initiatives include the Bash and Dzhankeldy Wind Power Plants with a total capacity of 1,000 megawatts and a transmission line, the Samarkand 1 and 2 solar projects with 1,000 MW of solar power and a 1,000 MWh battery energy storage system, and the Tashkent BESS Project, which consists of a 500 MWh BESS.
Uzbekistan aims to generate 40 percent of its electricity from renewable sources by 2030, a critical milestone in its broader plan to achieve 20 gigawatts of clean energy capacity by the decade鈥檚 end.
Mohammad Abunayyan, the chairman of ACWA Power鈥檚 board of directors, who also chairs the Saudi-Uzbek Business Council, emphasized the significant progress in his company鈥檚 collaboration with the Uzbek government, highlighting its role as a key strategic investor in the country鈥檚 rapidly growing clean energy sector.
Abunayyan said: 鈥淭oday鈥檚 groundbreaking highlights the multitude of large-scale foreign direct investments and commendable efforts by Uzbekistan to strengthen the potential of the country鈥檚 energy system and capacity. It also paves the way for the commencement of ACWA Power projects that are expected to yield widespread benefits for Uzbekistan鈥檚 key regions and communities.鈥
Prince Abdulaziz commended the robust relationship between the Kingdom and Uzbekistan and said the alliance has nurtured deep collaboration across multiple sectors, with a particular focus on energy, which has brought mutual benefits to both nations, according to a statement from the company.
The Saudi minister also praised the economic cooperation between the two countries, particularly in the context of Saudi Vision 2030 and Uzbekistan Strategy 2030. He stressed their shared goals of economic development, diversification, renewable energy, and sustainable growth, as well as the Kingdom鈥檚 growing investment in Uzbekistan鈥檚 electricity sector amid the country鈥檚 energy transition.
In October, ACWA Power announced it signed a letter of intent with the Asian Infrastructure Investment Bank to secure $150 million for the development of three wind power plants in Uzbekistan, namely the Kungrad 1, 2, and 3 plants in the Karakalpakstan region.
The company, listed on the Saudi Stock Exchange, said in a press release that the financing will support the three facilities, each with a capacity of 500 MW.
The financing term is set at four years and will be backed by an institutional guarantee from ACWA Power.
Uzbekistan is a key foreign market for ACWA Power, which has been significantly involved in the country鈥檚 renewable energy sector in recent years.
The company鈥檚 current portfolio in Uzbekistan includes 11.6 GW of power, with 10.1 GW from renewable sources, along with the country鈥檚 first green hydrogen project, which has an annual capacity of 3,000 tonnes.
Since the partnership began, four major projects worth approximately $3 billion have been successfully implemented, with an ongoing portfolio of initiatives valued at $15 billion, ACWA Power said in the statement.