ACWA Power, a Saudi energy company, has inked an agreement with Uzbekistan’s Ministry of Energy to develop a 1.5 GW onshore wind project in the Karakalpakstan region. The project is anticipated to reach financial close by the end of 2023 and will involve an investment of $2.4 billion. As per the company’s statement, by the first quarter of 2026, the project is anticipated to be operational.
Additionally, it will assist Uzbekistan in meeting 19 per cent of its overall renewable energy targets. In addition to the wind farm, agreements for investments in green hydrogen that will include collaborating with Air Products were signed by ACWA Power and the Ministry of Energy. Furthermore, a $10 billion investment cooperation agreement (ICA) was signed for the country’s joint development of gas-to-power, renewable energy, and green hydrogen projects from 2019 to 2028. By 2026 and 2030, respectively, the agreements are anticipated to assist Uzbekistan in installing 8 GW and 12 GW of solar and wind energy capacity.
In June 2022, ACWA Power and Hassan Allam Holdings, an Egyptian engineering firm, signed a project agreement to develop a 1.1 GW wind project. The wind project would be constructed in Egypt’s Gulf of Suez and Gabal el Zeit region and will cost $1.5 billion. The project is scheduled to be financially closed by the third quarter of 2024 and operational by the end of 2026.
REGlobal’s Views: Countries in West, Central Asia and the Middle East are new emerging hotspots for large-scale solar and wind power development. ACWA Power is expanding its reach across many of these markets like Oman, Azerbaijan and Uzbekistan through large renewable power investments.
