ACWA Power Partners with Japan's Sumitomo for RE Projects in Uzbekistan
ACWA Power and Japan's Sumitomo Corporation have joined hands to develop USD 4.2 billion worth of solar and wind energy projects in Uzbekistan, including the Sazagan and Kungrad projects, integrating battery storage systems for enhanced grid reliability by 2028.
October 01, 2024. By EI News Network
This partnership aims to significantly advance renewable energy generation and storage projects across Uzbekistan. The planned projects, designated as Sazagan 1 and 2, will be situated in the Samarkand region and each will feature 500 MW of solar photovoltaic (PV) systems, complemented by 334 MW of battery energy storage systems (BESS). These sub-projects are anticipated to commence commercial operations between the second quarter of 2026 and the second quarter of 2027.
In addition to the Sazagan projects, the agreement also encompasses the development of the Kungrad 1, 2, and 3 wind projects located in the Republic of Karakalpakstan. Each of these wind projects will consist of a 500 MW wind power plant integrated with a 100 MW battery energy storage system, with commissioning expected in the second quarter of 2028. The total investment for the Samarkand and Kungrad projects is projected to reach approximately USD 4.2 billion, positioning them as some of the largest clean energy and storage initiatives in Uzbekistan to date.
As part of the joint development agreement, ACWA Power will divest 49 percent of its stake in the Samarkand and Kungrad projects to Sumitomo Corporation. This strategic partnership builds upon earlier collaborations announced in May 2024 during the Saudi-Japan Vision 2030 Business Forum, which emphasized cooperation in the areas of renewable energy and water solutions.
Thomas Brostrom, Chief Investment Officer of ACWA Power, expressed enthusiasm about the agreement, stating, “This joint development agreement with Sumitomo Corporation showcases ACWA Power's commitment to supporting Uzbekistan's impressive and ambitious energy transition.” He highlighted that integrating battery storage with solar and wind projects enhances grid reliability and maximizes renewable potential. Brostrom also pointed out that this partnership aligns with ACWA Power’s expanding portfolio in Uzbekistan, which includes multiple wind power plants and the country's first green hydrogen plant, expected to produce 3,000 metric tons of green hydrogen annually.
JP Tiwari, Vice President and Head of Business Development for Central Asia, Caucasus, and Turkey at ACWA Power, emphasised the importance of Uzbekistan as a significant market for the company. “Uzbekistan is ACWA Power's second-largest market in terms of investments, demonstrating our ongoing commitment to the country's energy transition and sustainable development targets,” he stated. Tiwari further noted that by leveraging the partnership with Sumitomo Corporation, ACWA Power is reinforcing its commitment to pursuing the largest clean energy projects in Uzbekistan, aiming to provide accessible, affordable, and sustainable energy for its residents.
Koichi Taniguchi, General Manager of the Overseas Energy Solution Strategic Business Unit at Sumitomo Corporation, also spoke about the collaboration, stating, “This joint development of remarkable renewable projects in Uzbekistan aligns with our company’s target in the power generation business to provide a stable supply of energy, essential for the economic and industrial development of local communities. We aim to contribute to the sustainable growth of the country and communities in Uzbekistan through this collaboration with ACWA Power.”
This landmark agreement between ACWA Power and Sumitomo Corporation marks a significant step forward in Uzbekistan's renewable energy landscape, promising to enhance energy security and promote sustainable development across the region.
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