Two SZE and Investment Agreements were signed for two wind farms located in Bukhara and Navoi regions
Tashkent, Uzbekistan (UzDaily.com) - The Ministry of Energy and the ACWA Power company are going through the main stages on the way of increasing Uzbekistan’s potential in the field of clean energy.
The sides will cooperate within three major energy projects with a total investment value of US$2.5 billion and a capacity of 2500 MW.
The official ceremony of the start of construction of the Syrdarya TPP with a capacity of 1500 MW was held.
Two Power Purchase Agreements (ESA) and Investment Agreements were signed for two wind farms in Bukhara and Navoi regions with a total capacity of 1000 MW.
High-ranking officials and representatives of Uzbekistan, Saudi Arabia and ACWA Power took part in the ceremonies held in Tashkent city and Syrdarya region.
Thanks to cooperation between the Ministry of Energy of Uzbekistan, the Ministry of Investment and Foreign Trade and the ACWA Power company, in pursuance of the agreements signed in March 2020, three main stages were passed on the way to the implementation of energy projects to increase the generation of clean energy in Uzbekistan by 2500 MW.
The ceremony of starting the construction of the Syrdarya TPP project with a capacity of 1500 MW was held with the participation of the heads of the delegations of the two countries, after which two SZE and Investment Agreements were signed for two wind farms located in the Bukhara and Navoi regions. The ceremony was also attended by high-ranking officials from the Ministry of Energy of Uzbekistan, the Ministry of Investment and Foreign Trade and ACWA Power.
The implementation of these three projects is the key to the required increase in the energy capacity of Uzbekistan, as electricity consumption is expected to reach 110 billion kWh by 2030. They are also consistent with Uzbekistan’s national energy efficiency program, the introduction of energy-saving technologies, and the development and implementation of renewable energy sources as part of recent reforms in the energy sector.
Alisher Sultanov, Minister of Energy of Uzbekistan:
“The passage of these stages demonstrates that we are fulfilling our obligations. Increasing clean energy production in Uzbekistan implies achieving multiple development and investment goals over a period of time. The effective implementation of our plans will allow us to attract more investments to Uzbekistan and improve the energy status of our country. The Ministry expresses its deep gratitude to ACWA Power and the Saudi Arabian delegation for the work started. We look forward to a long-term and fruitful cooperation. "
Mohammad Abunayan, Chairman of the Board of ACWA Power, expressed his admiration for the achieved results of the project, saying:
“We, representatives of a leading company in Saudi Arabia, are proud to play a significant role in the implementation of Uzbekistan’s ambitious plan to transform the energy industry in accordance with the current Cooperation Agreement between the two countries. Since we are moving on this path collectively, I would like to thank the official delegation of Saudi Arabia, headed by the Minister of Investment Khalid bin Abdulizaz Al-Falih and the Ambassador of Saudi Arabia to Uzbekistan Hisham Mishal Al-Suwaylem, who honored us by participating in the ceremony of starting construction the project and the signing of investment agreements with the government of Uzbekistan, which was the result of our leadership’s appreciation of the economic ties between the Kingdom of Saudi Arabia and the Republic of Uzbekistan. I would also like to express my gratitude to the Government of the Republic of Uzbekistan, the Ministry of Energy and the Ministry of Investment and Foreign Trade for their confidence in ACWA Power’s global experience in delivering electricity at low prices, which allowed us to expand our presence in the country through the implementation of these three projects.
The start of construction of the Syrdarya TPP, the signing of the SZE and the Investment Agreement on the Bash and Dzhankeldy wind farms in Bukhara and Navoi regions, which are key factors in Uzbekistan’s transition to the use of resources with low hydrocarbon emissions, underscores our desire to stay ahead of the process of reforming the energy sector and stimulating socio-economic development of the country. It also confirms our adherence to the Saudi Arabia Vision 2030 by diversifying the economy, maximizing foreign investment outside the Kingdom of Saudi Arabia. "
The ceremony of starting construction of the Syrdarya TPP with a capacity of 1500 MW was held in a solemn atmosphere. With an estimated cost of US$1.2 billion, the efficiency of this project is about 60%, which will save almost double the natural gas currently consumed for electricity generation compared to other power plants. The project envisages the use of the most modern design solutions, real-time operating and monitoring tools, designed by world experts to control the power generation process around the clock and uninterrupted supply of electricity to the national power system of Uzbekistan through an open air-insulated switchgear.
The Ministry of Energy of Uzbekistan and ACWA Power signed two Agreements for the purchase of electricity for two wind farms with a total capacity of 1000 MW. The Ministry of Investment of Uzbekistan and ACWA Power signed two Investment Agreements.
The total cost of the projects for the construction of the Bash and Dzhankeldy power plants located in the Bukhara region and on the border of Bukhara and Navoi regions, respectively, is about US$1.3 billion. These projects are expected to reduce carbon emissions by 1.6 million tonnes, thereby helping to meet the government’s goals of converting 40% of its energy capacity to renewables by 2031.
Agreements were reached on the development of hydrogen energy.
The Ministry of Energy and ACWA Power have reached agreements on the development of hydrogen energy. The signed framework agreement implies the first steps of Uzbekistan in achieving its goal to combat climate change and reduce greenhouse gas emissions through scientific research in the field of hydrogen and renewable energy, also voiced in the Paris Agreement under the UN Framework Convention on Climate Change.
ACWA Power specializes in the design, financing and operation of equipment for the production of electricity and desalinated water. ACWA Power was incorporated and established in 2004 in Riyadh, Saudi Arabia, with approximately 3,500 employees and an international presence in 12 countries in the Middle East, Africa, Central and Southeast Asia. ACWA Power’s portfolio includes 60 assets with an investment value of USD 61.2 billion, producing 38.7 GW of electricity and 5.8 million m3 / day of desalinated water supplied on a wholesale basis to meet the needs of public utilities and industrial enterprises within the framework of long-term offaker contracts based on outsourcing of utilities and public-private partnership models.
ACWA Power’s mission is to provide uninterrupted supplies of electricity and desalinated water at low prices, thereby effectively contributing to the sustainable socio-economic development of society and the country. ACWA Power is committed to the values of safety, people and productivity in conducting its operations in all regions of the world.