Uzbekistan signs agreements with Saudi Arabia’s ACWA Power

Uzbekistan’s Energy Ministry announced on 5 March the signing of three new strategic agreements, worth over $2 billion, with the Saudi Arabian utility developer ACWA Power to amplify power generation and develop technical expertise.
According to Uzbekistan’s Energy Ministry the agreements include a 25 year Power Purchase Agreement (PPA) – with a total investment value of $1.2 billion – for the development/construction/operation of a 1500 MW Combined Cycle Gas-Turbine (CCGT) power plant, an Implementation Agreement worth $550 million-$1.1 billion for the building of a wind power plant with a capacity of 500-1000 MW of clean energy and a Memorandum of Understanding (MOU) for the development of a training centre to enhance technical skills of Uzbek students.
“These newly agreed power projects represents a historic milestone for Uzbekistan and supports our mission to strengthen energy security through self-sufficient power sources. ACWA Power’s focus on smart, energy efficient technologies will provide more than 2000 MW of added power and enable us to achieve Uzbekistan’s Energy Minister Alisher Sultanov said.
For his part, ACWA Power Chairman Mohammad Abunayyan said one of his company’s priorities is to expand and extend its geographic footprint in Central Asia. “The market has an economically vibrant landscape that favours private investment and power sector fortification and this is where we can make a great contribution,” he said. “ACWA Power has an impressive track record in helping emerging markets and communities drive progress by providing access to affordable electricity. We are honoured to have been given the opportunity to utilise our energy expertise to unlock the tremendous growth potential of Uzbekistan’s power sector,” he added.
The 1500 MW CCGT power plant will be located in Shirin City in the Syrdarya region and will be developed under the ‘Build, Own, Operate, Transfer’ model, Uzbekistan’s Energy Ministry said in a press release, adding that ACWA Power will take the lead in constructing, engineering, operating and maintaining the plant.
Signed with the Ministry of Investments and Foreign Trade of Uzbekistan, and with an estimated aggregate worth of $1.2 billion, the PPA has a 25-year duration, with JSC National Electric Grids of Uzbekistan acting as the sole off-taker. The CCGT plant’s efficiency rate will be in excess of 60% – saving almost twice the natural gas currently used for electricity production, the press release read.
An implementation agreement worth $550 million-$1.1 billion has also been signed with the Ministry of Energy to utilise Uzbekistan’s natural renewable energy sources. ACWA Power will leverage the country’s wind power to generate 500-1000 MW of energy.
The third agreement is an MoU between the Ministry of Energy of Uzbekistan, Air Products & Chemicals and ACWA Power. This agreement entails training programs to bolster the technical expertise of students at one or more colleges in Uzbekistan. It will equip potential talent with the tools and knowledge to gradually support a local supply chain for the utilities and chemicals sectors in Uzbekistan.