- Partnerships include $2.4 billion 1.5GW wind farm, one of the world’s biggest single-site onshore wind projects.
- Move by PIF-invested company addresses global energy challenges and highlights the Fund’s role in spurring the green economy.
- Joint projects reflect Saudi Arabia’s aim to be a global leader in the field of renewable energy.
ACWA Power – the global developer, investor, and operator of power generation, water desalination and green hydrogen plants – has signed three major agreements with the government of the Republic of Uzbekistan.
The company, in which Saudi Arabia's PIF holds a stake, struck a Heads of Terms agreement for the development of a 1.5GW wind farm in the Karakalpakstan region. It also announced an Investment Cooperation Agreement to jointly develop gas-to-power, renewable energy, and green hydrogen projects valued at US$10 billion over a five-year period, starting in 2023. A third agreement relates to charting a roadmap for the investment of green hydrogen in collaboration with Air Products.
“This partnership will be a major contribution to Uzbekistan's achievements in developing and modernizing the energy sector, and specifically our dedication to green energy. The joint projects will also give us access to the most modern technologies," said Azim Akhmedkhojaev, First Deputy Minister of Energy of the Republic of Uzbekistan.
“Uzbekistan today is at the forefront of energy transition in central Asia," said Mohammad Abunayyan, ACWA Power Chairman.
The 1.5GW Karakalpakstan wind project, located in north-western Uzbekistan, aims to be one of the biggest single-site onshore facilities of its kind. Valued at $2.4 billion, the project is expected to achieve financial close by the end of 2023 and be fully commissioned by the first quarter of 2026. When complete, it is expected to power 1.65 million households and offset 2.4 million tons of carbon emissions per year.
The planned facility is ACWA Power's fifth wind project in Uzbekistan. The company's Uzbek portfolio also includes three wind farms, and a combined cycle gas turbine project. With the signing of the new agreements, Uzbekistan will become the second largest country for ACWA Power in terms of overall investment. This highlights PIF's backing of the green economy, its aim to drive socio-economic growth, and Saudi Arabia's wider ambition to be a global leader in the field of renewable energy.
With the environment, renewable energy and sustainability at the heart of Vision 2030 and Saudi Arabia's national goal to reach Net Zero by 2060, these agreements responsibly address today's global energy and climate challenges. They also support 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.
