ACWA Power, a Saudi developer, has signed PPAs and investment agreements with the government of the Republic of Uzbekistan to build the 1,500 MW Kungrad wind farm in Karakalpakstan, Uzbekistan. The wind farm, which was previously known as the Karakalpakstan Wind IPP, is anticipated to include three 500 MW wind power projects owned by three subsidiaries. These will be ACWA Power Kungrad Wind 1 LLC FE, ACWA Power Kungrad Wind 2 LLC FE and ACWA Power Kungrad Wind 3 LLC FE. Additionally, 100MW-capacity battery energy storage systems will be included in each of the three projects.
The contract will have a 25-year duration period once the construction is completed. Once completed, the wind project will have the capacity to power 1.65 million households in the region while displacing 2.40 million tonnes of carbon emissions annually. ACWA Power estimates that the contracted revenues to have a positive effect on its income statements once the scheme achieves the commercial operation date (PCOD) in the third quarter of 2027.
Earlier this month, Acwa Power and the Water and Electricity Holding Company (Badeel) agreed to construct, own, and operate a 2.06 GW solar photovoltaic (PV) plant in the Makkah province of Saudi Arabia. The Al Shuaibah II project, which is situated in Al Shuaibah, would be jointly owned by Badeel, a fully owned subsidiary of the nation’s Public Investment Fund, and ACWA Power (PIF). The facility would be the sixth solar energy one for ACWA Power in Saudi Arabia.
REGlobal’s Views: ACWA Power is expanding its reach across many of new and emerging markets like Oman, Azerbaijan and Uzbekistan through large renewable power investments. These countries have adequate potential for renewable energy and are focusing on decarbonising their energy mix in a massive way, thus providing ample opportunities to large global developers.
