ACWA Power, Sumitomo to develop Uzbekistan’s largest renewable energy projects

IMage: ACWA Power/ For illustrative purposes

In a significant step toward boosting renewable energy adoption in Uzbekistan, ACWA Power, a Saudi-listed leader in energy transition, has partnered with Japan’s Sumitomo Corporation to develop two of the country’s largest renewable energy projects.

With a total investment of $4.2bn, the projects promise to transform Uzbekistan’s energy landscape by harnessing solar and wind power, alongside advanced battery storage systems.

The ambitious initiative comprises the Samarkand and Kungrad projects, which together have 2.5 gigawatts (GW) of generation capacity and 968 megawatts (MW) of battery energy storage systems (BESS).

The Samarkand projects, Sazagan 1 and 2, will feature 500 MW solar PV plants coupled with 334 MW of battery storage, with commercial operations expected to commence between Q2 2026 and Q2 2027.

Meanwhile, the Kungrad wind projects will include three wind power plants, each with a capacity of 500 MW and 100 MW of BESS, slated for commissioning by Q2 2028.

ACWA Power-Sumitomo Corp: A strategic partnership

This joint development agreement allows ACWA Power to divest 49 per cent of its stake in the Samarkand and Kungrad projects to Sumitomo Corporation, strengthening the collaboration initiated earlier this year during the Saudi-Japan Vision 2030 Business Forum.

This agreement emphasises both companies’ commitment to advancing renewable energy solutions in Uzbekistan, a country poised for a transformative energy transition.

Thomas Brostrom, ACWA Power’s chief investment and development officer, expressed enthusiasm for the collaboration, stating, “This joint development agreement showcases ACWA Power’s commitment to supporting Uzbekistan’s impressive and ambitious energy transition. Integrating battery storage with our solar and wind projects enhances grid reliability and maximises renewable potential.”

Pioneering sustainable development

The partnership not only aims to generate clean energy but also contributes to Uzbekistan’s broader goals of sustainable development and energy security.

“Uzbekistan is the second-largest market in terms of investments, demonstrating our ongoing commitment to the country’s energy transition,” remarked JP Tiwari, VP and head of Business Development for Central Asia, Caucasus, and Turkey. “By leveraging our partnership with Sumitomo Corporation, we are further cementing this commitment, providing accessible, affordable, and sustainable energy for the people of Uzbekistan.”

Koichi Taniguchi, GM of the Overseas Energy Solution SBU at Sumitomo Corporation, echoed this sentiment, emphasising the importance of aligning projects with local communities’ energy needs.

“This joint development of remarkable renewable projects aligns with our company’s target to provide a stable supply of energy essential for the economic and industrial development of local communities,” he said.