ACWA Power (2082), the world’s largest private water desalination company, has signed an agreement with Japan’s Sumitomo Corporation to develop Uzbekistan’s largest renewable energy projects.
Details
ACWA Power noted that its joint projects with the Japanese firm will include “Sazagan 1” and “Sazagan 2” in Samarkand.
Each consists of 500MW solar photovoltaic (PV) and 334MW battery energy storage systems (BESS).
The kick-off of operations on these two projects is expected to begin between the second quarter of 2026 and the second quarter of 2027.
The second group includes “Kungrad 1, 2, and 3 for wind power,” located in Uzbekistan’s autonomous Republic of Karakalpakstan.
Each sub-project will include a wind power plant with a 500 MW generation capacity and will be complemented by a 100 MW battery energy storage capacity facility.
The projects are expected to begin operation in the second quarter of 2028.
So what
The total investment for the Samarkand and Kungrad projects is expected to total USD 4.2 billion.
Under the joint development agreement, ACWA Power will sell 49% of its share in the Samarkand and Kungrad projects to Sumitomo.
This partnership follows agreements announced during the Saudi-Japan Vision 2030 Business Forum held last May, which aimed to encourage bilateral cooperation on both the renewable energy and water solutions front.
It’s worth noting that ACWA Power’s shares surged 8% on September 26, reaching their highest level since being listed on Tadawul in 2021.
The company’s share value recently surpassed the SAR 500 threshold.
The stock has gained about 90% since the beginning of this year, up to that session.
The significance of the Uzbek Market
Thomas Brostrom, Chief Investment Officer at the Saudi company, said that the agreement supports Uzbekistan’s efforts to transition towards clean energy.
It will also enhance ACWA Power’s efforts to expand its portfolio in the Asian country, which includes wind power plants in several regions, as well as the country’s first green hydrogen plant, set to produce 3,000 metric tons annually.
On the other hand, JP Tiwari, Vice President and Head of Business Development in Central Asia, the Caucasus, and Turkey, indicated that Uzbekistan is “the company’s second-largest market” in terms of investment volume, after the Kingdom.
He added that they aim to implement the largest clean energy projects in Uzbekistan, providing energy at competitive and sustainable prices.
Some context
ACWA Power, Badeel, and Saudi Aramco Power (SAPCO) announced the financial closure of domestic solar energy production plants.
The developments are part of the National Renewable Energy Program, which is aimed at developing 70% of the Kingdom’s renewable energy capacity by 2030.
The total value of these projects amounts to around SAR 12 billion (USD 3.2 billion), with a combined generation capacity of about 5.5 GW of renewable energy.
This has raised ACWA Power’s solar energy portfolio to 14 projects.
Now what
Turkish Vice President, Cevdet Yılmaz, stated that ACWA Power has entered talks with Ankara to invest in green energy projects there.
Yılmaz added that the company is interested in investing up to USD 5 billion in Turkey’s energy sector and other sectors.
It’s worth mentioning that about 44% of ACWA Power is owned by Saudi Arabia’s sovereign wealth fund, which is leading the Kingdom’s ambitions to boost its solar energy presence.
In contrast, Turkey is seeking to attract more foreign investment in its energy infrastructure, especially in renewable energy projects, as it aims to reduce its dependence on imported fossil fuels.
The energy giant revealed its “first project” in Turkey nearly a decade ago, a 950 MW natural gas combined cycle power plant in Kirikkale, Central Anatolia.
