ACWA Power has signed a joint development agreement with Sumitomo Corporation
It will divest a 49% stake in its solar, wind and BESS projects in Uzbekistan
The solar PV plants under the agreement include 2 projects with 500 MW PV and 334 MW BESS capacity each
Saudi Arabia’s ACWA Power has joined hands with Japan-based global integrated energy trading company Sumitomo Corporation to co-develop what they term as Uzbekistan’s largest renewable energy projects.
These projects are located in Samarkand and Kungrad regions representing a combined investment of $4.2 billion. ACWA Power will divest 49% of its stake in the 2 projects to Sumitomo under the joint development agreement signed.
In Samarkand, the partners will work together on Sazagan 1 and 2 solar PV projects with 500 MW capacity, and 334 MW battery energy storage systems (BESS) each. Their commercial operations are due between Q2 2026 and Q2 2027.
For the Kungrad 1, 2 and 3 wind projects in Karakalpakstan, the individual capacity is 500 MW wind and 100 MW BESS each. These are planned to come online in Q2 2028.
“Integrating battery storage with our solar and wind projects in Samarkand and Kungrad enhances grid reliability and maximises renewable potential,” said ACWA Power’s Chief Investment Officer Thomas Brostrom. “The agreement also aligns with our growing Uzbekistan portfolio, which includes wind power plants in multiple regions and the country’s first green hydrogen plant that will produce 3,000 metric tons of green hydrogen per year."
The Saudi company calls the country its 2nd largest market in terms of investments. In March 2023, ACWA Power secured power supply contracts with the National Grid of Uzbekistan for 1.4 GW solar PV and 1.5 GWh of BESS for projects in Tashkent, Samarkand and Bukhara regions (see Uzbekistan Firms Up Plans For GW-Scale Solar & Storage).
Uzbekistan targets 10 GW of solar power and 5 GW of wind energy by 2030 to achieve 35% share of electricity from renewables in its electricity mix.