Uzbekistan Greenlights 1,500 MW Wind Farm Construction
ACWA Power Subsidiaries to Implement Construction of Largest Wind Farm in the Region
ACWA Power, a Saudi Arabian energy company, has been selected to oversee the implementation of one of the largest wind farms in the region. The project, located in the Kungrad district of Karakalpakstan, Uzbekistan, will consist of a 1,500 MW wind farm, along with 300 MW of electricity storage systems, a 500-kilovolt substation, and overhead power lines.
The construction of the wind power plant was announced by Uzbekistan’s President Shavkat Mirziyoyev, who outlined measures to facilitate its development. This initiative is part of the country’s efforts to diversify its energy sources and transition towards renewable energy.
To support the project financially, ACWA Power will provide the necessary investment. The construction will be carried out by three subsidiaries of ACWA Power, namely Kungrad Wind 1, Kungrad Wind 2, and Kungrad Wind 3. Each subsidiary will operate a 500 MW wind farm and a 100 MW battery system.
According to the published presidential resolutions, Kungrad Wind 1 has secured $1.067 billion in funding for the wind farm and the associated infrastructure. The other two subsidiaries have received $667 million each for the project.
To ensure the purchase of electricity generated from the wind farm, an agreement was signed in December 2022 with National Grid. Under this agreement, National Grid will guarantee the purchase of electricity for a period of 25 years. The tariff for the electricity will be fixed in foreign currency, while payment will be made in the national currency.
The investment agreements between the Uzbek government and the three ACWA Power subsidiaries have been approved by President Mirziyoyev. These agreements include contracts with NEG (National Electric Grid), and they allow the subsidiaries to open foreign accounts to facilitate payments to foreign contractors, suppliers, and creditors.
The initial agreement for the wind farm project was reached in the spring of 2021. Construction is scheduled to commence in 2024, with a target completion date before the end of 2026. Once operational, the wind farm is expected to be the largest in Central Asia.
ACWA Power is already involved in other renewable energy projects in Uzbekistan. The company is currently constructing a 100 MW wind farm in Karakalpakstan and is participating in the development of two 500 MW wind farms in the Bukhara region. ACWA Power has also signed agreements to establish two photovoltaic power plants and energy storage complexes. Additionally, the company is investing in the construction of thermal power plants in the Syrdarya region and the production of “green” hydrogen in Chirchik.
With these ambitious projects, Uzbekistan aims to accelerate its transition to clean and sustainable energy sources, reduce its reliance on fossil fuels, and contribute to global efforts in combatting climate change. The successful implementation of the wind farm and other renewable energy initiatives will have significant long-term benefits for the country’s energy sector and its commitment to a greener future.
