ACWA Power signs Uzbek wind farm financing deal

The agreement will fund the 100MW Karatau project

ACWA Power has signed financing documents for the 100MW Karatau wind farm in Uzbekistan with a total investment value of US$120m.

The agreement was one of two signed by the company during the EBRD 2023 Annual Meeting and Business Forum in Samarkand.

The Uzbek Ministry of Economy and Finance (MoEF) has provided support for the wind farm through the Government Support Agreement (GSA), with project funding coming through Deutsche Investitions (DEG), the European Bank for Reconstruction and Development (EBRD), and Proparco.

The National Electric Grid of Uzbekistan (NEGU) will serve as the exclusive buyer of electricity generated by the project for 25 years.

The Karatau Wind Project is expected to achieve commercial operation in February 2025.

In addition, ACWA Power signed a deal to partner with national chemicals holding company Uzkimyosanoat to develop green hydrogen projects.

Construction will be executed in two phases achieving substantial reductions in natural gas consumption and carbon dioxide emissions.

The deals will help advance Uzbekistan’s target to decarbonise 35% of its energy sector by 2030.

Marco Arcelli, CEO of ACWA Power, said: “Our team has done a magnificent job to launch our second project in Uzbekistan together with Uzkimyosanoat and the Uzbek government to make the chemical industry in Uzbekistan a world leader in decarbonisation.

“Moreover, the financial close of the Karatau wind project with the support of EBRD, DEG, Proparco and the Ministries of Energy and Investment, Industry & Trade of Uzbekistan is a key milestone in the installation of about 5000MW of capacity in the country by ACWA Power, which will reduce CO2 emissions by over 6m tonnes by 2030.”