ACWA Power to Develop 1.5 GW Wind Farm in Uzbekistan
The wind farm shall comprise of three 500MW wind power projects owned by 3 subsidiaries
ACWA Power has signed power purchase agreements (PPAs) and investment agreements (IAs) with the government of the Republic of Uzbekistan to develop the 1.5 GW Kungrad wind farm in the republic of Karakalpakstan, Uzbekistan; formerly referred to as the Karakalpakstan Wind IPP.
The wind farm shall comprise of three 500MW wind power projects owned by 3 subsidiaries, namely ACWA Power Kungrad Wind 1 LLC FE, ACWA Power Kungrad Wind 2 LLC FE and ACWA Power Kungrad Wind 3 LLC FE.
Each of the 3 projects will also incorporate a 100MW capacity battery energy storage system. Regarded as the largest single-site wind farm in Central Asia to date, and one of the largest of its kind in the world, the wind farm is expected to reach an investment value of USD 2.4 billion.
Previously, a Heads of Terms agreement signed between ACWA Power and Uzbekistan’s Ministry of Energy and Ministry of Investment & Foreign Trade in August 2022 laid the foundation on which the power purchase agreements and investment agreements for the facility were to be procured.
The PPAs were signed by Rohit Gokhale, Executive Vice President, ACWA Power and Dadajon Isakulov, Chairman, National Electric Grid of Uzbekistan, JSC (“NEGU”); while the investment agreements were signed by Mohammad Abunayyan, Chairman, ACWA Power on behalf of ACWA Power, Rohit Gokhale, on behalf of the project companies, and His Excellency Jamshid Khodjaev, Deputy Prime Minister & Minister of Investment and Foreign Trade, on behalf of the Ministry of Investment and Foreign Trade (MIFT). The agreements were signed in the presence of His Excellency Khalid Al-Falih, Minister of Investment of Saudi Arabia, His Excellency Jurabek Mirzamakhmudov, Minister of Energy, Republic of Uzbekistan, and senior executives from ACWA Power and the Government of Republic of Uzbekistan.
The Kungrad wind farm will bolster the Uzbek government’s long-term strategy to diversify the country’s energy mix, which targets 8GW and 12GW of solar and wind capacity by 2026 and 2030, respectively.
“It is my great pleasure to share an update on the progress of the Kungrad project. Uzbekistan is committed to delivering on policy goals to increase the renewable energy share of the country’s energy mix and reduce carbon emissions. The development of green energy and market reform go hand in hand in Uzbekistan, and the Kungrad project is a milestone both for our wind industry and the new public-private partnership model, introduced by the far-sighted reforms of President Mirziyoyev. The wind farm in Karakalpakstan, which will be built by our reliable partner ACWA Power, will be another pillar of a sustainable and reliable energy system in Uzbekistan, “said Jurabek Mirzamakhmudov, Minister of Energy of Uzbekistan.
“We are deeply honoured to build upon our close partnership with the Republic of Uzbekistan as the nation continues to advance its decarbonization efforts, pursuing a strong shift towards renewable energy. The signing of key agreements today for the landmark Kungrad wind farm project, which will set a new benchmark for sustainable energy development in the region, and the world, would have not been possible without the guidance of our visionary leadership and the trust and commitment of our partners from the Uzbek government”, said Mohammad Abunayyan, ACWA Power Chairman.
“We are proud to play a vital role in supporting Uzbekistan’s long-term renewable strategy, stemming from the strong international ties between Saudi Arabia and Uzbekistan, and remain committed to delivering clean energy at a low cost to ensure energy security and enable sustainable progress,” he added.
The project is expected to achieve financial close by 2024 and will be fully commissioned in 2027. When complete, the facility is expected to power 1.65 million households.
