Dubai, UAE — Saudi ACWA Power has signed three power purchase agreements and investment agreements valued at $2.5 billion with Uzbekistan to develop solar photovoltaic (PV) and battery energy storage systems (BESS) in several cities of the central Asian nation.
The pacts were signed with Uzbekistan’s Joint-Stock Company (JSC) National Electric Grid of Uzbekistan (NEGU) and Ministry of Investment, Industry and Trade
The agreements include the development of three solar photovoltaic (PV) projects in Tashkent and Samarkand and three Battery Energy Storage Systems (BESS) in Tashkent, Bukhara and Samarkand, with a total capacity of 1.4 GW of additional renewable energy and 1.5 GWh of additional battery storage capacity, ACWA Power said in a statement.
The Tashkent projects will include a 400 MW PV plant and 500 MWh BESS, while two 500 MW PV projects each and a 500 MWh BESS will be developed in Samarkand. Another 500 MWh BESS will be located in Bukhara, and the project will include overhead transmission lines to help dispatch power to the grid.
Uzbekistan’s aims to generate 35 percent of its electricity (15,000 MW) from renewable sources by 2030, which will help it offset 16 million tons of emissions a year.
Mohammad Abunayyan, Chairman ACWA Power, said, “ACWA Power’s expertise in green hydrogen, green ammonia, and clean energy has greatly strengthened our collaboration with Uzbekistan. Our latest venture into Battery Energy Storage Systems is a significant step forward in our partnership.”
In August 2022, ACWA Power signed an agreement with Uzbekistan’s energy and investment ministries committing $10 billion of new investments in the next five years in addition to the already committed $5 billion.
The Tashkent, Samarkand and Bukhara PV and BESS projects will contribute to $ 2.5 billion of new investments as part of the targeted $10 billion investment. The company also recently signed an extensive heads of terms agreements to develop a green hydrogen facility and a green ammonia pilot project in the Kazakhstan.
ACWA Power has five ongoing projects in Uzbekistan, including four wind projects and a combined gas cycle turbine facility. Uzbekistan is the second largest in terms of value for the company after its home market of Saudi Arabia.