Saudi Arabia’s ACWA Power to develop 1.5GW wind plant in Uzbekistan

ACWA Power has signed power purchase agreements and investment agreements with Uzbekistan to develop the 1.5 GW Kungrad wind farm in Karakalpakstan, Uzbekistan, formerly called the Karakalpakstan Wind IPP.

The wind farm shall comprise three 500MW wind power projects owned by three subsidiaries, namely  ACWA Power Kungrad Wind 1, ACWA Power Kungrad Wind 2, and ACWA Power Kungrad Wind 3.

Each of the three projects will also incorporate a 100 MW 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 $2.4bn.

Previously, a Heads of Terms agreement signed between ACWA Power and Uzbekistan’s Ministry of Energy and Ministry of Investment & Foreign Trade in August laid the foundation on which the power purchase agreements and investment agreements for the facility were to be procured.

Read: ACWA Power, Uzbekistan ink three key energy agreements worth $12bn

The wind farm is expected to offset 2.4 million tonnes of carbon emissions per year and will have a minimum environmental impact due to the use of the latest mitigation technologies, including bird-detecting technology to prevent bird collision or fatality.

The Kungrad wind farm will bolster the Uzbek government’s long-term strategy to diversify the country’s energy mix, which targets 8 GW and 12 GW of solar and wind capacity by 2026 and 2030, respectively.

Jurabek Mirzamakhmudov, Minister of Energy of Uzbekistan, said: “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.”

“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, Chairman, ACWA Power.

Clean energy development continues to accelerate in Uzbekistan. ACWA Power is proud to announce the signing of 3 power purchase agreements (PPAs) and Investment Agreements (IAs) to develop the 1.5GW Kungrad wind farm in Karakalpakstan. pic.twitter.com/9jFQZMR53w

— ACWA Power-Accelerating Energy Transition Globally (@ACWAPower) December 27, 2022

 

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.

Additionally, under the cooperation agreement signed between ACWA Power and the Uzbek government in August, ACWA Power formalised agreements for the development of large-scale green hydrogen facilities in Uzbekistan. The aim of these projects is to reduce the country’s dependency on natural gas; significantly contribute to Uzbekistan’s decarbonisation goals; and further support research in the field of green hydrogen.

The 1.5GW Kungrad wind project is ACWA Power’s fifth project in Uzbekistan. The company’s Uzbek portfolio also includes three wind farms, and a combined cycle gas turbine project. Uzbekistan is the second largest country for ACWA Power in terms of overall investment.