ACWA Power has recently finalized financing arrangements for the Karatau wind farm in Uzbekistan, which boasts a capacity of 100MW and a total investment value of US$120 million.
The agreement was among the notable contracts signed by the company at the EBRD 2023 Annual Meeting and Business Forum in Samarkand.
The Uzbek Ministry of Economy and Finance (MoEF) has extended support to the wind farm through the Government Support Agreement (GSA). The project's funding will be facilitated by Deutsche Investitions (DEG), the European Bank for Reconstruction and Development (EBRD), and Proparco.
Under the terms of the agreement, the National Electric Grid of Uzbekistan (NEGU) will exclusively purchase the electricity generated by the Karatau wind farm for a period of 25 years.
It is anticipated that the Karatau Wind Project will become commercially operational by February 2025.
ACWA Power has also entered into a partnership agreement with Uzkimyosanoat, the national chemicals holding company, to jointly develop green hydrogen initiatives.
The construction process will be carried out in two phases, which will substantially reduce natural gas consumption and carbon dioxide emissions.
These agreements are expected to contribute significantly to Uzbekistan's goal of achieving a 35% decarbonization rate in its energy sector by 2030.
Marco Arcelli, the CEO of ACWA Power, expressed his satisfaction with the developments, stating, “Our team has done an outstanding job in launching our second project in Uzbekistan in collaboration with Uzkimyosanoat and the Uzbek government, aiming to establish Uzbekistan's chemical industry as a global leader in decarbonization.”
Arcelli further highlighted the significance of the financial closure of the Karatau wind project, acknowledging the support of EBRD, DEG, Proparco, as well as the Ministries of Energy and Investment, Industry & Trade of Uzbekistan. He emphasized that this achievement represents a pivotal milestone in ACWA Power's ambitious plan to install approximately 5,000MW of capacity in Uzbekistan, leading to a reduction of over 6 million tonnes of CO2 emissions by 2030.
