ACWA Seals $2.4 Billion Wind Energy PPA With Uzbekistan

Saudi Arabia-headquartered ACWA Power Company has inked a power purchase agreement (PPA) with the National Electric Grid of Uzbekistan (NEGU) for a value of $2.40 billion. As per the information shared by the ACWA Power in mandatory filing before the Saudi Arabia stock exchange, the deal was inked on 23 December, 2022.

According to the filing, ACWA Power has purchased three wind energy special purpose vehicles (SPVs) for the development of 1.5 GW of cumulative wind capacity in Kungrad district.

The three project companies are individually developing a 500  MW wind power plant at the site under three separate PPAs.

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ACWA Power had revealed last August about this investment in Uzbekistan. The Kungrad wind energy project is going to be the largest single-site wind farm in Central Asia. It will also be one of the largest on the globe. It was previously called the Karakalpakstan Wind IPP.

Once the new wind farm is operational, it will power 1.65 million households of the country. The project will also offset about 2.40 million tonnes of CO2 emissions every year.

ACWA Power mentioned that the deal covers development, construction, and operation of the wind project and the company has a duration period of 25 years once the construction is complete.

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The Wind Of Change In Uzbekistan

Recently, the European Bank for Reconstruction and Development (EBRD) announced a fresh deal to support Uzbekistan’s renewable energy by arranging two syndicated loans worth $520 million to help construct and put into operation two wind power plants with a total installed capacity of 1GW in the Bukhara region.

Similarly, French RE player Voltalia has agreed with the Uzbekistan government to jointly build renewable energy projects with a combined output of between 400 MW and 500 MW.

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Goldwind is also supplying 111 units of GW155-4.5MW wind turbines to Masdar (Abu Dhabi Future Energy Company) for the largest of its kind project in Uzbekistan and Central Asia.