Giant steppes | Saudi Arabia's ACWA flags $2.4bn deal for 'Central Asia's largest wind farm'

Developer expects to sign heads of terms with nation's government over 1.5GW project to enter service in 2026

Beautiful cliffs in the canyon of the Ustyurt plateau, Uzbekistan.
Beautiful cliffs in the canyon of the Ustyurt plateau, Uzbekistan.Foto: Shutterstock

Saudi Arabia’s ACWA Power expects to agree a $2.4bn deal with the government of Uzbekistan paving the way for a 1.5GW onshore wind farm in the Central Asian nation.

The Saudi developer told investors it plans to sign a heads of terms agreement on Wednesday with the Uzbek energy ministry over the project in Karakalpakstan, which it claimed would be the region’s largest single-site wind farm when commissioned by the first quarter of 2026.

ACWA Power said the project would contribute around 19% of Uzbekistan’s green power ambitions and power more than 1.6 million homes.

The Saudi group expects the project to reach financial close by the end of next year.

Despite still investing in new gas plants, Uzbekistan has emerged as one of the most ambitious nations in wind and solar in the Central Asian region with a target to hit a 30% renewable power share by 2030 and a 5.5GW build programme.

The country's deputy energy minister last year told Recharge that Uzbekistan's transmission infrastructure will need “vast improvements” to support the new-build power plants, with work underway at state grid operator National Electric Grids of Uzbekistan with the backing of the World Bank.

ACWA Power is not the only Middle East developer active in Uzbekistan, which also has ambitions to act as a hydrogen hub supplying Europe and Asia.

Abu Dhabi’s Masdar in 2021 said it also plans to develop a 1.5GW onshore wind project there, with an initial 500MW in operation by 2024.

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Published 17 August 2022, 10:19Updated 17 August 2022, 10:19
Asia-PacificACWA PowerUzbekistanPolicy