ACWA Power, a prominent Saudi developer of power generation, has finalised project agreements for the 100MW Nukus wind project in the Republic of Uzbekistan. Valued at US$108 million, the Nukus project is located in the Karakalpakstan region, in the NW of the country. The project is Uzbekistan’s first publically tendered wind project. ACWA Power won the competitive bid after proposing a tariff of US 2.5695 cents/kwh.
ACWA Power Wind Karatau FE LLC signed the 25- year Power Purchase Agreement with JSC National Electric Grid of Uzbekistan. ACWA Power has signed a Government Support Agreement (GSA) with the government of Uzbekistan.
The Nukus wind farm is ACWA Power’s fourth project in Uzbekistan, after the US$1.2 billion Sirdarya project, a 1500 MW combined cycle gas turbine power plant, the 500 MW Bash facility and the US$1.3 billion Djankedly wind power project in Bukhara.
The project seeks to bolster the Uzbekistan government’s efforts to diversify the country’s energy mix and increase its renewable energy capacity in line with recent strategic reforms. The country’s Ministry of Energy is targeting a capacity of 8GW for solar and wind energy by 2026.
The project’s financial close is expected to be finalised by the third quarter of 2022, with commercial operations scheduled for early 2024.