ACWA signs energy agreements worth $12 bn with Uzbekistan

23 August 2022

Uzbekistan’s Ministry of Energy has signed three agreements with Saudi Arabia based Acwa Power worth a total of $12 billion. The agreements were signed during a recent the state visit to Saudi Arabia of Uzbekistan’s president, Shavkat Mirziyoyev.

The three agreements comprise:

  • A Heads of Terms agreement to develop a 1.5 GW wind farm in the Karakalpakstan region of Uzbekistan – it will be largest single onshore wind project in the world;
  • A plan for investment in green hydrogen, in Uzbekistan, in collaboration with Air Products, a global leader in industrial gases;
  • A $10 billion Investment Co-operation Agreement to jointly develop gas-to-power, renewable energy, and green hydrogen projects in Uzbekistan.

The Karakalpakstan wind project, located in north-western Uzbekistan, will be the biggest single site onshore wind project in the world. A power purchase agreement and an investment agreement are expected to follow soon.

The project is expected to achieve financial close by the end of 2023 and be fully commissioned by Q1 2026. When complete, it will contribute 19% to Uzbekistan’s overall renewable energy goals.

Acknowledging the importance of green hydrogen generation to the vision of president Shavkat Mirziyoyev, Uzbekistan’s ministry of Energy, ACWA Power, and Air Products are also planning investment in this area. This agreement follows an MoU signed during the visit of a Saudi Arabian delegation to Uzbekistan in January 2021.

The initiatives are expected to materially contribute to Uzbekistan’s long-term strategy to diversify its energy mix, as it targets 8 GW and 12 GW of solar and wind capacity by 2026 and 2030 respectively.

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