Acwa Power breaks ground on 100MW wind facility in Uzbekistan
Project aligns with the government’s plans to diversify Uzbekistan’s energy mix with a target of 8GW solar and wind capacity by 2026
Acwa Power has broken ground on a 100MW wind project in the Karatau district, Karakalpakstan region of Uzbekistan. The Nukus wind project is being built at an investment of $108mn and is set to reach financial close by Q3, 2022.
According to a statement, the project is Acwa Power’s fourth facility in Uzbekistan. The company’s in-country portfolio also includes a combined cycle gas turbine plant and two wind projects. Once the project achieves commercial operation in 2024, it will contribute 1.25% to Uzbekistan’s overall renewable energy goals. Additionally, it is expected to power 120,000 Uzbek households and offset 200,000 tonnes of carbon emissions per year, the statement said.
The groundbreaking ceremony was attended by Uzbekistan president Shavket Mirziyoyev, Saudi Arabia’s ambassador to Uzbekistan, Yousef Saleh Algahrah Al-Otaibi and Acwa Power chairman Mohammad Abunayyan and other senior Uzbek officials.
Construction works have kicked off less than two months after binding project agreements were signed with the government of the Republic of Uzbekistan and JSC National Electric Grid (NEGU), the off taker. The Nukus wind project is said to mark the country’s first open, competitive tender in the wind energy sector. It comes in line with government’s plans to diversify Uzbekistan’s energy mix with a target of 8GW solar and wind capacity by 2026.
“Uzbekistan has been working closely with the IFIs to open the country’s power sector to private investment and to help us reach our goal of 25% of energy consumption deriving from renewable sources by 2026. Uzbekistan is committed to policy goals to improve energy efficiency and increase renewable energy’s share of the country’s energy mix. We have a huge variety of projects underway, and already completed,” stated Alisher Sultanov, minister of energy of Uzbekistan.
Acwa Power won the bid after proposing a tariff of US 2.5695 cents/kwh, which was the lowest in a tender process that included 11 other bidders.
Abunayyan remarked, “Laying the cornerstone of the Nukus plant shortly after the signing of the official purchase agreements is as an affirmation to supporting the ambitious vision of the Uzbek leadership to enhance the potential of the Uzbek energy sector. The project will comprise wind turbine generators using advanced design and technical features. Each WTG will have a capacity of generating more than 5MW of electricity, which demonstrates Acwa Power’s ability to keep optimising design together with manufacturers for continuous innovation.”
He concluded, “Furthermore, Acwa Power will also endeavor to give local advisory, manufacturing, and manpower firms an opportunity to participate in the project.”
