Acwa Power signs deals with Uzbekistan worth over $2bn

8 Mar 2020
Acwa Power signs deals with Uzbekistan worth over $2bn

Saudi Arabia’s Acwa Power has signed strategic agreements worth more than $2bn with Uzbekistan’s energy ministry.

The agreements will include the construction and operation of a 1,500MW combined-cycle gas turbine (CCGT) power plant and a 500MW-1,000MW wind power plant.

The combined-cycle gas plant will require an investment of $1.2bn. Acwa Power signed a 25-year power purchase agreement (PPA) with Uzbekistan’s National Electric Grids, the offtaker for the planned project. The project will be developed under a build, own, operate, transfer (BOOT) model.

The gas power plant will be located in the central region of Sydarya.

Acwa Power will also develop and operate a $1.1bn wind power project.

The third strategic agreement signed was a memorandum of understanding (MoU) for a training centre, which will require an expected investment of $550m.

The agreements mark the second success for Acwa Power in the Eurasian region in 2020. In January, the developer signed implementation agreements for a 240MW wind power project in Azerbaijan.

The Saudi developer has signed a power purchase agreement (PPA) to deliver power from the wind farm for a period of 20 years under a build-own-operate (BOO) contact.

Acwa Power signed an initial memorandum of understanding (MoU) for the project in March 2019.

The project is part of the Azerbaijani government’s plans to diversify the country’s energy resources and develop significant renewable energy capacity.

The project is also part of Baku’s plans to delegate responsibility to the private sector to finance and develop utilities infrastructure, with the Acwa Power project one of the country’s first two independent power producer (IPP) projects.

Acwa Power is the Middle East’s largest utilities developer, with investment in 31.2GW of power assets and 5.3 million cubic metre a day of desalination plants.

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