ACWA Power Announces $262 Million Wind Power Plant Project in Karakalpakstan
The Ministry of Economy and Finance Signs PPP Agreement with Saudi Company for Wind Power Station in Uzbekistan
On March 28, the Ministry of Economy and Finance in Uzbekistan, with support from the European Bank for Reconstruction and Development (EBRD), signed a Public-Private Partnership (PPP) agreement with a Saudi company, ACWA Power, for the construction of a wind power station in Karakalpakstan.
The agreement entails the construction of a wind power station with a total capacity of 200 MW, alongside a 100 MW electricity storage system, on PPP terms. The cost of this ‘green’ energy project is estimated at $262.65 million.
Overall, during the first quarter, Uzbekistan concluded 25 PPP agreements amounting to $311.65 million. The agreements span various sectors, including water supply, education, and culture.
To support the development of PPP projects in the country, the Ministry of Economy and Finance and the EBRD signed a cooperation agreement on March 2 for a fund of 10 million euros. The fund will be used for the payment of consulting services related to PPP project development.
Earlier in November, the Ministry of Energy awarded ACWA Power the tender to construct a wind farm in the Beruni and Karauzyak districts of Karakalpakstan. The project, supported by the EBRD, is scheduled to launch in April 2022.
ACWA Power emerged as the winner of the tender by offering a competitive price of 4.09 cents per kilowatt-hour of electricity, surpassing its main competitor, Abu Dhabi Future Energy PJSC (Masdar), which valued the project at 4.99 cents per kilowatt-hour.
The partnership between the Ministry of Economy and Finance, EBRD, and ACWA Power marks a significant step towards enhancing Uzbekistan’s energy infrastructure and promoting sustainable development in the region.
