New developments on three major power projects with a combined investment value of US$ 2.5bn and capacity of 2500MW
The Uzbekistan Ministry of Energy, ACWA Power and Air Products have entered into a strategic framework agreement to enable research programs in the fields of renewable energy and hydrogen with the endorsement of Power Purchase Agreements (PPAs) and investment agreements
Following agreements signed in March 2020, cooperation between the Uzbekistan Ministry of Energy, the Ministry of Investments and Foreign Trade, and Saudi Arabia’s ACWA Power have 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, followed by the signing of two Power Purchase Agreements and Investment Agreements for two wind power plants located in Bukhara and Navoi, was conducted in the presence of Alisher Sultanov, Energy Minister of the Republic of Uzbekistan, as well as a Saudi Arabian delegation led by Eng Khalid Al-Falih, Minister of Investment.
ACWA Power will be delivering these three projects utilising 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.
National Mandate
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.
“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 programme, which is central to the country’s economic transformation,” noted Al-Falih.
“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,” observed Sultanov.
Training and up-skilling
ACWA Power is also committed to training and up-skilling 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.
“ACWA plays a vital role in supporting Uzbekistan’s decarbonisation efforts and energy transformation, stemming from the international cooperation between Saudi Arabia and Uzbekistan under their progressive and visionary leadership,” commented Mohammad Abunayyan, Chairman, ACWA Power.
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.”
Sirdarya CCGT
The groundbreaking of the 1500MW Sirdarya CCGT plant was marked by ceremonially commencing construction. The project will provide cleaner, more efficient and cost-competitive gas power that can be utilised 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 US$1.2bn, 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.
ts design, operational, and real time monitoring structure is state of the art, 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.
Bukhara Wind Project
The two Power Purchase Agreements for the two wind power plants; with an aggregate power generation capacity of 1000MW was signed by Isakulov Aynakulovich, Chairman, National Electric Grids of Uzbekistan and Rajit Nanda, Chief Portfolio Management Officer and Interim CIO, ACWA Power.
The Bukhara agreements 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.
Hydrogen Programme
The Uzbekistan Ministry of Energy, ACWA Power (a leading developer, investor and operator of power and water assets) and Air Products (a world leader in hydrogen production and distribution), have also 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.
ACWA Power will continue to play a role in high-growth markets through operational excellence and technological expertise, delivering power and desalinated water to communities in thirteen countries worldwide.
