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ACWA Power projects in Uzbekistan

ACWA Power projects in Uzbekistan

ACWA Power has achieved financial closure for the USD533 million Tashkent Riverside project in Uzbekistan, which includes a 200MW solar plant and Central Asia’s largest battery energy storage system (BESS). This development will feature a 500MWh BESS aimed at stabilizing Uzbekistan’s grid. Uzbekistan represents ACWA Power’s second-largest market for investments.

ACWA Power's current portfolio in Uzbekistan comprises 11.6GW of power generation capacity, with 10.1GW coming from renewable sources. Additionally, the company is advancing Uzbekistan's first green hydrogen project with an annual capacity of 3,000 tonnes. Financing for the Tashkent Riverside project involved agreements with six lenders, including the European Bank for Reconstruction and Development (EBRD), Islamic Development Bank (IsDB), DEG, Proparco, Standard Chartered, and KfW-IPEX Bank. These agreements secure USD386 million in debt, covering more than two-thirds of the project's total cost. The project is pivotal to Uzbekistan’s ambition of achieving 25GW of renewable energy capacity by 2030.

Marco Arcelli, CEO of ACWA Power, stated, “In a world that seeks greater private capital participation in emerging markets for growth and decarbonisation, Uzbekistan exemplifies this vision. The Tashkent Riverside project reflects strong trust in ACWA Power as a private sector partner and a global leader in renewables and energy storage.” Nandita Parshad, MD of the Sustainable Infrastructure Group at EBRD, said, “This project is key to Uzbekistan’s goal of installing 25GW of renewables by 2030, and it can power 170,000 households with battery storage capacity equivalent to 8,000 electric vehicles.”

The project aligns with Uzbekistan’s ambitious objectives to shift towards a low-carbon economy and broaden its energy mix. By 2030, Uzbekistan targets generating 40% of its electricity from renewable sources. The BESS will play a crucial role in mitigating the variability of renewable energy sources, ensuring a dependable electricity supply to meet the increasing demand in Uzbekistan.

ACWA Power has solidified its position in Uzbekistan as the second-largest market for investments, showcasing the company's enduring commitment to the country. ACWA Power's current portfolio in Uzbekistan includes 11.6GW of power generation capacity, with 10.1GW sourced from renewable energy. Additionally, the company is advancing Uzbekistan's inaugural green hydrogen project, boasting an annual capacity of 3,000 tons.

Recently, ACWA Power secured a significant milestone by signing a monumental USD4.85 billion power purchase agreement (PPA) with the National Electric Grid of Uzbekistan. This agreement pertains to the Aral 5GW Wind Independent Power Producer (IPP) project, set to become Central Asia's largest wind farm, located in the Karakalpakstan region.

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