ACWA Power Signs Power Purchase and Investment Agreements for Three New Green Projects in Uzbekistan

ACWA Power, a leading developer, investor, and operator of power generation, water desalination, and green hydrogen plants worldwide, has signed Power Purchase Agreements and Investment Agreements with Uzbekistan's Joint-Stock Company National Electric Grid of Uzbekistan (NEGU) and Ministry of Investment, Industry, and Trade. The agreements involve the development of three solar photovoltaic (PV) projects in Tashkent and Samarkand and three Battery Energy Storage Systems (BESS) in Tashkent, Bukhara, and Samarkand with a total capacity of 1.4 GW of renewable energy and 1.5 GWh of battery storage capacity. The projects will help Uzbekistan achieve its target of generating 35% of its electricity from renewable sources by 2030, which will offset 16 million tonnes of CO2 emissions annually.

Mohammad Abunayyan, ACWA Power Chairman, expressed his gratitude to the Saudi Arabian and Uzbekistani leadership for their support and guidance in driving Uzbekistan's renewable energy goals. He added that their latest venture into BESS is a significant step forward in their partnership and a clear demonstration of their commitment to transform the energy landscape in the Republic. ACWA Power's total investment commitments of $7.5 billion in energy projects will contribute to achieving Uzbekistan's energy diversification goals.

The BESS will play a crucial role in stabilizing the grid and promoting renewable energy in Uzbekistan. They will mitigate the effects of intermittency that are inherent in renewable energy sources, store excess electricity generated during times of high production, and make it available during periods of low production. These projects will provide power to over one million households in Tashkent, Samarkand, and Bukhara, and will offset around 1.6 million tonnes of carbon emissions annually.

The Investment Agreements were signed by the Ministry of Investment, Industry, and Trade of Uzbekistan and ACWA Power, while the Power Purchase Agreements were signed by NEGU and ACWA Power. ACWA Power has already committed $5 billion of investment in Uzbekistan and recently signed an extensive heads of terms agreement to develop a green hydrogen facility and a green ammonia pilot project in the Republic. With five ongoing projects in Uzbekistan, including four wind projects and a combined gas cycle turbine facility, Uzbekistan is the second-largest market for ACWA Power after its home market of Saudi Arabia.