Uzbekistan’s Ministry of Energy has signed three new agreements with Saudi Arabian developer ACWA Power, worth $2bn to increase power generation and to develop technical expertise.
The first agreement is to invest $1.2bn for the development, construction and operation of a 1.5GW combined cycle gas-turbine (CCGT) power plant along with a 25-year power purchase agreement (PPA).
Under the second agreement, a wind farm with a capacity between 500MW and 1GW will be developed through an investment between $550m and $1.1bn.
The third agreement is a memorandum of understanding (MOU) for the development a training centre to enhance technical skills among Uzbek students.
Uzbekistan Minister of Energy Alisher Sultanov said: “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 a more sustainable, secure and affordable energy ecosystem for our country.”
ACWA Power will lead construction of 1.5GW CCGT plant
Estimated to cost nearly $1.2bn, the 1.5GW CCGT power plant could contribute the country’s energy diversification strategy.
To be located in Shirin City in the Syrdarya region, the power plant will be developed under a ‘build, own, operate, transfer’ model. The Saudi-based developer ACWA Power will lead the project’s construction, engineering, operating and maintenance of the plant.
The energy generated from the power plant will be sold solely to JSC National Electric Grids of Uzbekistan under a 25-year PPA.
ACWA Power chairman Mohammad Abunayyan said: “ACWA Power is on a dynamic growth path and our priority has been to expand and extend our 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.
“Our partnership will create new opportunities for national and community development and help build a sustainable future for all the people of this great country.”
