ACWA Power, a leading developer, investor, and operator of power generation, water desalination, and green hydrogen plants worldwide, has signed two significant agreements during the EBRD 2023 Annual Meeting and Business Forum in Samarkand that took place between May 16 and 18, 2023, marking a major milestone to advance Uzbekistan’s target to decarbonise 35 per cent of its energy sector by 2030.

The first set of agreements entails a groundbreaking partnership with Uzkimyosanoat, the national holding company for chemicals in Uzbekistan, to decarbonise the sector through innovative green hydrogen projects. Construction will be executed in two phases, achieving substantial reductions in natural gas consumption and carbon dioxide emissions. The agreements were signed by the Chairman of the Board of Uzkimyosanoat, the Deputy Minister of the Ministry of Investment, Industry, and Trade of the Republic of Uzbekistan, the Deputy Chairman of the National Electric Grid of the Republic of Uzbekistan (NEGU), and the Chief Executive Officer of ACWA Power.

The second set of agreements involves the signing of financing documents for the Karatau wind farm, formerly referred to as the Nukus Wind Project, with a total investment value of $120 million. The National Electric Grid of Uzbekistan (NEGU) will serve as the exclusive buyer of electricity generated by the project for 25 years. The Uzbek Ministry of Economy and Finance (MoEF) has provided support for the project through the Government Support Agreement (GSA). Project funding has been secured through Deutsche Investitions (DEG), the European Bank for Reconstruction and Development (EBRD), and Proparco. The financing agreements were signed by representatives of DEG, EBRD, Proparco, and the Chairman of the Board of Directors of ACWA Power.

REGlobal’s Views: Uzbekistan has rich solar and wind resources which makes it a major investment hub for renewable energy development for large energy players like ACWA Power. The company has a large pipeline in the country and the completion of the green hydrogen projects would give it a further stronger position in the market.