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ACWA Power inks PPAs for three green projects in Uzbekistan

Anela DoksoBy Anela Dokso21/03/20233 Mins Read
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Three Power Purchase Agreements and Investment Agreements have been signed by ACWA Power with the National Electric Grid of Uzbekistan (NEGU), the Joint-Stock Company (JSC), and the Ministry of Investment, Industry, and Trade.

In accordance with the agreements, three solar photovoltaic (PV) projects and three battery energy storage systems (BESS) will be built in Tashkent, Samarkand, and Bukhara, respectively, with a combined capacity of 1.4 GW of additional renewable energy and 1.5 GWh of additional battery storage. A 400 MW PV plant and a 500 MWh BESS will be built as part of the Tashkent projects, while two 500 MW PV projects and a 500 MWh BESS will be built in Samarkand. In order to help with power distribution to the grid, a further 500 MWh BESS will be built near Bukhara. This project will also feature overhead transmission lines.

The initiatives will be crucial in helping Uzbekistan meet its ambitious goals to diversify its energy sources and transition to a low-carbon economy. By 2030, the Republic’s energy reform goals call for producing 35% of its electricity from renewable sources, or 15,000 MW split between 10,000 MW of solar power and 5,000 MW of wind power. Meeting this goal will reduce annual CO2 emissions by 16 million tonnes.

Uzbekistan will soon have the biggest battery energy storage facilities in the area thanks to the integration of BESS into the grid, which will be essential for grid stabilization and the promotion of renewable energy in the Republic. The BESS will assist in reducing the consequences of intermittency, which is a natural characteristic of renewable energy sources. When production is low, they will make use of the excess electricity they store during high production times. This will guarantee a consistent and dependable supply of electricity to the system, ultimately assisting in meeting the country of Uzbekistan’s rising energy demand.

By delivering electricity to over a million homes in Tashkent, Samarkand, and Bukhara, these projects will have a significant socioeconomic impact on Uzbekistan and will yearly offset over 1.6 million tonnes of carbon emissions.

The National Electric Grid of Uzbekistan JSC (NEGU) and ACWA Power signed the Power Purchase Agreements, while the Ministry of Investment, Industry, and Trade of Uzbekistan and ACWA Power signed the Investment Agreements.

The Republic of Uzbekistan’s Ministry of Energy and Ministry of Investment, Industry and Trade signed an Investment Cooperation Agreement with ACWA Power during His Excellency President Shavkat Mirziyoyev’s visit to the Kingdom of Saudi Arabia in August 2022, committing an additional $10 billion in investments over the previous $5 billion. The PV and BESS projects in Tashkent, Samarkand, and Bukhara will add $2.5 billion in new investments to the intended $10 billion investment. A large heads of terms deal was also recently inked by the company to build a green hydrogen factory and a green ammonia pilot project in the Republic.

In Uzbekistan, ACWA Power is working on five projects, including a combined gas cycle turbine facility and four wind projects. After its native market of Saudi Arabia, Uzbekistan is the company’s second-largest market in terms of value.

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