ACWA Power signs power purchase and investment agreements for 1.5 GW wind plant in Uzbekistan

ACWA Power has signed power purchase agreements (PPAs) and investment agreements (IAs) with the government of the Republic of Uzbekistan to develop the 1.5 GW Kungrad wind farm in the republic of Karakalpakstan, Uzbekistan.
ACWA Power signs power purchase and investment agreements for 1.5 GW wind plant in Uzbekistan
Courtesy of ACWA Power.

The agreements were signed on 23 December 2022. The wind farm will consist of three 500 MW wind power projects owned by three subsidiaries, namely ACWA Power Kungrad Wind 1 LLC FE, ACWA Power Kungrad Wind 2 LLC FE and ACWA Power Kungrad Wind 3 LLC FE.

Each of the 3 projects will also incorporate a 100 MW capacity battery energy storage system. Regarded as the largest single-site wind farm in Central Asia to date, and one of the largest of its kind in the world, the wind farm is expected to reach an investment value of USD 2.4 billion.

Previously, a Heads of Terms agreement signed between ACWA Power and Uzbekistan’s Ministry of Energy and Ministry of Investment & Foreign Trade in August 2022 laid the foundation on which the power purchase agreements and investment agreements for the facility were to be procured.

Located in Kungrad district, Republic of Karakalpakstan, in Uzbekistan, the wind farm is expected to offset 2.4 million tonnes of carbon emissions per year and will have minimum environmental impact due to the utilisation of the latest mitigation technologies, including bird detecting technology, that combines cutting edge technology in both image sensors and software to prevent bird collision or fatality.

The Kungrad wind farm will bolster the Uzbek government’s long-term strategy to diversify the country’s energy mix, which targets 8GW and 12GW of solar and wind capacity by 2026 and 2030, respectively.

“It is my great pleasure to share an update on the progress of the Kungrad project. Uzbekistan is committed to delivering on policy goals to increase the renewable energy share of the country’s energy mix and reduce carbon emissions” said Jurabek Mirzamakhmudov, Minister of Energy of Uzbekistan. “The development of green energy and market reform go hand in hand in Uzbekistan, and the Kungrad project is a milestone both for our wind industry and the new public-private partnership model, introduced by the far-sighted reforms of President Mirziyoyev. The wind farm in Karakalpakstan, which will be built by our reliable partner ACWA Power, will be another pillar of a sustainable and reliable energy system in Uzbekistan

The project is expected to achieve financial close by 2024 and will be fully commissioned in 2027. When complete, the facility is expected to power 1.65 million households.

Additionally, under the US$10 billion investment cooperation agreement signed between ACWA Power and the Uzbek government in August 2022, ACWA Power formalised agreements for the development of large-scale green hydrogen facilities in the Republic of Uzbekistan. The aim of these projects is to reduce the country's dependency on natural gas; significantly contribute to Uzbekistan’s decarbonisation goals; and further support research in the field of green hydrogen.

The 1.5 GW Kungrad wind project is ACWA Power’s fifth project in Uzbekistan. The company’s Uzbek portfolio also includes three wind farms, and a combined cycle gas turbine project. Uzbekistan is the second largest country for ACWA Power in terms of overall investment.

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