Saudi-based renewable energy company ACWA Power signed a letter of intent with the Asian Infrastructure Investment Bank (AIIB) to finance Uzbekistan’s winds energy projects. The agreement includes a four-year bridge loan of $150 million, which the company will use to support three 500 MW capacity wind farms.
This loan agreement is backed by a corporate guarantee from ACWA Power, ensuring that the financial means for these projects will be secured. These wind farms will contribute towards Uzbekistan’s objective of increasing its renewable energy capacity. Uzbekistan targets renewable energy to generate 40% of electricity by 2030 with a target of 27 GW of renewable capacity.
ACWA Power has already invested heavily in Uzbekistan, positioning it as the firm’s second-largest market in terms of investment. Its company energy portfolio in the country sums to 11.6 GW, with 10.1 GW coming from renewable sources. Additionally, ACWA Power is also part of the development of Uzbekistan’s first green hydrogen project, which expects to produce 3,000 tons of hydrogen annually.
ACWA Power received in August 2023 a contract for the development of an onshore wind project in Karakalpakstan, Uzbekistan, that will have a capacity of 1.5 GW. This is the largest onshore wind development in Central Asia. There are three wind farms, each with a capacity of 500 MW. This project, once completed and put into operation, would be producing electricity to 1.65 million households as well as saving 2.4 million tons of carbon emissions annually.
