ACWA Power has signed three Power Purchase Agreements and Investment Agreements with Uzbekistan’s Joint-Stock Company (JSC) National Electric Grid of Uzbekistan (NEGU) and Ministry of Investment, Industry and Trade.
The agreements include the development of three solar photovoltaic projects in Tashkent and Samarkand and three battery energy storage systems (BESS) in Tashkent, Bukhara and Samarkand, with a total capacity of 1.4 GW of additional renewable energy and 1.5 GWh of additional battery storage capacity. The Tashkent projects will include a 400 MW PV plant and 500 MWh BESS, while two 500 MW PV projects each and a 500 MWh BESS will be developed in Samarkand. Another 500 MWh BESS will be located in Bukhara, and the project will include overhead transmission lines to help dispatch power to the grid.
The projects are expected to play an instrumental role in achieving Uzbekistan’s ambitious targets to transition to a low-carbon economy as well as diversifying its energy sources. The Republic’s targets to reform the energy sector entail generating 35% of its electricity from renewable sources by 2030, equating to 15 GW – 10 GW of solar power and 5 GW of wind power. Achieving this target will help offset 16 million tonnes of CO2 emissions a year.
By incorporating BESS into the grid, Uzbekistan will soon have the largest battery energy storage facilities in the region which will play a crucial role in stabilising the grid while promoting renewable energy in the Republic.
ACWA Power has already committed to $10 billion of new investments in the next five years above the already committed $5 billion. The Tashkent, Samarkand and Bukhara PV and BESS projects will contribute $2.5 billion of this. The company also recently signed an extensive heads of terms agreements to develop a green hydrogen facility and a green ammonia pilot project in the Republic.