The cooperation between the Uzbekistan Ministry of Energy, the Ministry of Investments and Foreign Trade, and ACWA Power has led to three major milestones in the development of power projects to enable Uzbekistan’s ambitious energy transformation plan and increase energy capacity by 2500MW.
The ground-breaking ceremony of the 1500MW Sirdarya CCGT plant was followed by the signing of two Power Purchase Agreements and Investment Agreements for two wind power plants located in Bukhara and Navoi.
ACWA Power will be delivering these three projects utilizing its technical knowledge, expertise, and experience, to contribute directly to meeting Uzbekistan’s growing yearly electricity demand, which is expected to reach 110 billion kWh by 2030.
The company’s contribution is also aligned with Uzbekistan’s national mandate to increase energy efficiency, introduce energy-saving technologies, and develop and implement renewable energy sources, under its recent energy sector reforms.
“These visionary projects mark the start of a new chapter in the investment relationship between Saudi Arabia and Uzbekistan. As the Minister of Investment for Saudi Arabia, it is particularly pleasing to see a homegrown Saudi company such as ACWA Power supporting Uzbekistan to deliver such a vital component of its infrastructure investment program, which is central to the country’s economic transformation. The Ministry of Investment for Saudi Arabia is proud to have played a leading role in facilitating this momentous agreement.
“ACWA Power is a true Saudi success story and a cornerstone of the Kingdom’s burgeoning private sector. This growth is being supported by various business-friendly reforms introduced by the Ministry of Investments and Foreign Trade. I am confident that this partnership signals the start of further collaborations in the trade and investment space for both of our nations.”H.E. Eng Khalid Al-Falih, Minister of Investment for Saudi Arabia
“Most importantly, today’s milestones show that we are delivering on our promises. Enhancing Uzbekistan’s clean energy capacity involves many developmental and investment targets to be hit, over a period of time. By executing our plans efficiently, we will only attract more investment to Uzbekistan, and improve our nation’s energy status. The Ministry extends its deep thanks to ACWA Power and the wider Saudi delegation for making this triumph happen. We look forward to a long and fruitful working relationship.”Alisher Sultanov, Minister of Energy of Uzbekistan.
ACWA Power is also committed to training and upskilling 1000 local employees in Uzbekistan during the project’s construction and operation phases, generating long-term, socio-economic value through knowledge sharing and job creation.
“As a proud Saudi company, we are privileged to play a vital role in supporting Uzbekistan’s decarbonization efforts and energy transformation, stemming from the international cooperation between Saudi Arabia and Uzbekistan under their progressive and visionary leadership. We would like to take this opportunity to thank the Saudi delegation, led by H.E. Khalid Al-Falih, Saudi Minister of Investment, and H.E. Hisham Mishal Al-Suwailem, the Saudi Ambassador to Uzbekistan for their valuable support of these projects. We also extend our gratitude to the Republic of Uzbekistan’s Government, the Ministry of Energy and the Ministry of Investments and Foreign Trade for their confidence in ACWA Power’s mission to safely, reliably and responsibly produce power at low cost.
“Through the addition of new renewable energy capacity, exploration of innovative technologies and the advancement of cleaner, more efficient and cost-competitive gas power, ACWA Power is expanding its presence in Uzbekistan, a high growth market, leveraging our global expertise and technical know-how to create long-term and sustainable value for the country’s local communities.”Mohammad Abunayyan, ACWA Power chairman.
The ground-breaking of the 1500MW Sirdarya CCGT plant was marked by ceremonially beginning of the construction. The project will provide cleaner, more efficient and cost-competitive gas power that can be utilized across industries in Uzbekistan and is expected to meet 15 percent of power demand in Uzbekistan and comprise of 8 percent of installed power capacity when complete.
With an approximate aggregate worth of $1.2 billion, the plant has an efficiency rate of over 60 percent – saving almost twice the natural gas currently used for electricity production compared with older plants in the country.
Its design, operational, and real time monitoring structure is engineered by global experts to drive the energy production process round the clock, to create a seamless flow through the air-insulated switchyard to the national power grid of Uzbekistan, while offsetting 2.2 million tonnes of carbon dioxide emissions each year.
The two Power Purchase Agreements for the two wind power plants; with an aggregate power generation capacity of 1000MW was signed by Isakulov Dadajon Aynakulovich, chairman of JSC “National Electric Grids of Uzbekistan” and Rajit Nanda, chief portfolio management officer and interim CIO of ACWA Power.
The two Investment Agreements were signed by H.E. Sardor Umurzakov from the Ministry of Investments and Foreign Trade and Mr. Abunayyan chairman of ACWA Power.
The ‘Bash’ and ‘Dzhankeldy’ plants which are located in the Bukhara and the Bukhara/Navoi regions respectively, have a total investment value of $1.3 billion, and are expected to offset 1.6 million tonnes of carbon emissions per year.
Powered by approximately 200 wind turbines, the projects will contribute one third of Uzbekistan’s 3GW wind energy targets, supplying 2.7 million households and supports the government’s aims to have 30 percent of its power capacity from renewable sources by 2030.
The Uzbekistan Ministry of Energy, ACWA Power and Air Products have entered into a strategic framework agreement to develop research programs and projects in the field of hydrogen and renewable energy, using the extensive experience of ACWA Power and Air Products.
This agreement will support Uzbekistan’s ongoing efforts to reduce greenhouse gas emissions as part of global commitment to the Paris Agreement under the UN Framework Convention on Climate Change.