ACWA Power, the Saudi Arabian utility giant, has signed a letter of intent with the Asian Infrastructure Investment Bank (AIIB) for $150 million in financing for wind power projects in Uzbekistan.
The deal, announced during the AIIB’s annual Board of Governors meeting in Samarkand, will fund the development of three wind power plants, collectively known as the Kungrad 1, 2, and 3 projects, each with a capacity of 500 megawatts.
The $150 million financing package will cover four years and comes with an institutional guarantee provided by ACWA Power.
The Saudi-based company has made major strides in Uzbekistan’s energy sector, with its current portfolio in the country amounting to 11.6 gigawatts (GW) of power, 10.1 GW of which is renewable.
ACWA Power is also spearheading Uzbekistan’s first green hydrogen initiative, designed to produce 3,000 tonnes of hydrogen annually.
“This announcement marks an important step forward in our commitment to delivering clean, reliable, and affordable energy in Uzbekistan,” said Mohammad Abunayyan, founder and chairman of ACWA Power.
“The Kungrad wind projects will significantly contribute to Uzbekistan’s renewable energy goals, and we are excited to partner once again with AIIB to bring these projects to life.”
The Kungrad wind facilities represent a major milestone in Uzbekistan’s transition towards renewable energy.
The Central Asian nation has set ambitious targets to meet 40% of its total electricity demand—equivalent to 27 GW—from renewable energy sources, including wind and solar, by 2030.
The Kungrad wind plants will play a vital role in helping the country meet these goals as part of its broader energy transition strategy.
AIIB President Jin Liqun highlighted the significance of the project in promoting sustainable energy solutions in Uzbekistan. “By enhancing energy efficiency and transitioning to renewable resources, these projects will support Uzbekistan’s ambitious climate goals and align with AIIB’s mission to invest in sustainable infrastructure,” Liqun stated.
He also noted that the Kungrad wind farms would catalyse Uzbekistan’s ongoing journey towards renewable energy.
Uzbekistan’s energy sector has become a key international market for ACWA Power in recent years, with the company actively involved in a range of renewable energy initiatives across the country.
In July 2024, ACWA Power secured $373.1 million in financing for the Riverside power plant near Tashkent, a facility that will generate 200 MW of solar photovoltaic (PV) energy and store up to 500 MW per hour using advanced battery technology.
Earlier this year, ACWA Power also entered into a $255.12 million power purchase agreement with Uzbekistan’s National Electric Grid for the Nukus 2 wind project, which will add 200 MW of wind energy capacity to the country’s grid.
These investments are part of ACWA Power’s broader strategy to expand its global footprint and enhance its portfolio of renewable energy projects.
Established in 2004, the company now operates in 13 countries across the Middle East, Africa, Central Asia, and Southeast Asia.
ACWA Power’s current portfolio comprises 90 projects valued at approximately $94.3 billion, with a total generation capacity of 65.6 GW.
The Uzbek government has been working closely with international partners to accelerate its renewable energy initiatives as it looks to diversify its energy mix away from traditional fossil fuels. The nation’s renewable energy efforts, particularly in wind and solar, are also seen as key to addressing climate change and improving energy security in a region heavily reliant on imported energy.
Uzbekistan’s focus on renewable energy is gaining momentum, with additional projects in the pipeline to increase the country’s capacity in wind, solar PV, and green hydrogen.
These initiatives are expected to not only meet domestic demand but also position Uzbekistan as an influential leader in clean energy production.
