ACWA Power Signs $533 Million Renewable Energy Project Deal In Uzbekistan

ACWA Power, a Saudi-listed company and the world's largest private water desalination firm, has signed financing agreements for the Riverside power plant in Tashkent Uzbekistan.

The greenfield development will consist of a 200MW solar photovoltaic (PV) plant and a 500MWh battery energy storage system (BESS) to stabilise the Uzbek grid. The project's total investment cost is 2 billion Saudi Riyals ($533 million), as stated by ACWA Power in a communication to the Saudi Stock Exchange.

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ACWA Power fully owns the Riverside Power Station project in Tashkent. The company's subsidiary, ACWA Power Riverside Solar Energy Holding, secured 1.4 billion Saudi Riyals for 19 years to develop, finance, design, construct and operate the power plant.

The funding was provided by a consortium of development finance institutions, funds and international commercial lenders such as the European Bank for Reconstruction and Development (EBRD), Proparco, DEG, Islamic Development Bank (IsDB), Standard Chartered Bank and KFW-IPEX Bank.

Uzbekistan's Renewable Energy Goals

The Riverside project will play a crucial role in helping Uzbekistan achieve its ambitious low-carbon economy targets and diversify its energy sources. By 2030, the country aims to generate 40% of its electricity from renewable sources. The BESS will help mitigate intermittency issues associated with renewable energy by storing excess electricity during high production times and making it available during low production periods.

Uzbekistan is ACWA Power's second-largest market in terms of investments. The company's current portfolio in the country includes 11.6GW of power capacity, with 10.1GW being renewable energy projects and a green hydrogen project with an annual capacity of 3,000 tons.

ACWA Power recently signed a $4.85 billion power purchase agreement with the National Electric Grid of Uzbekistan for Central Asia's largest wind farm – the Aral 5GW Wind Independent Power Producer project in the Karakalpakstan region.