ACWA Power to develop, operate facility
ACWA Power, a developer and operator of power generation and desalination plants in Saudi Arabia, has signed agreements worth up to US$2.5 billion with the Ministry of Energy of Uzbekistan for power generation projects including a 1500 MW combined-cycle gas turbine power plant.
The agreements include a 25-year Power Purchase Agreement (PPA) and Investment Agreement with a value of US$1.2 billion for the development/construction/operation of the 1500 MW combined-cycle gas turbine (CCGT) power plant. ACWA Power also announced an Implementation Agreement worth US$550 million-US$1.1 billion for the building of wind power plants with a capacity of 500-1000 MW and a Memorandum of Understanding (MOU) for the development of a training center to enhance technical skills of Uzbek students and professionals.
The 1500 MW CCGT power plant will be in Shirin City in the Sirdarya region. ACWA Power will take the lead in constructing, engineering, operating and maintaining the plant.
The project has an estimated aggregate worth of US$1.2 billion. The PPA has a 25-year duration, with JSC National Electric Grids of Uzbekistan acting as the sole off-taker. The CCGT plant’s efficiency rate will be in excess of 60%, saving almost twice the natural gas currently used for electricity production. The Investment Agreement for this project is signed with the Ministry of Investment and Foreign Trade.
An implementation agreement worth US$550 million-US$1.1 billion has also been signed with the Ministry of Energy to utilize Uzbekistan’s natural renewable energy sources. The agreement envisages the development, financing, construction, operation and maintenance of a 500-1000 MW wind farm.
The third agreement is an MoU between the Ministry of Energy of Uzbekistan, Air Products & Chemicals and ACWA Power. This agreement entails training programs to bolster the technical expertise of students and professionals at one or more colleges in Uzbekistan. It will equip potential talent with the tools and knowledge to gradually support a local supply chain for the utilities and chemicals sectors in Uzbekistan.
The agreements reflect Uzbekistan’s growing role in the global energy market, its commitment to energy security and use of the latest technologies. It also demonstrates Uzbekistan is becoming an attractive destination for foreign investors.