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December 21, 2021

ACWA Power signs agreements for Nukus wind project in Uzbekistan

The $108m Nukus wind farm is the first publicly tendered wind project in the country.

By Umesh Ellichipuram

Saudi Arabian energy company ACWA Power has finalised agreements for 100MW Nukus wind project in the Republic of Uzbekistan.

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The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
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Located in the Karakalpakstan region, the $108m Nukus wind farm is the first publicly tendered wind project in the country and was won by the ACWA Power through a competitive bidding process.

Uzbekistan Minister of Energy Alisher Sultanov said: “We welcome this agreement as a further indication of ACWA Power’s commitment to Uzbekistan’s energy future.

“It is also a validation of the open and transparent bidding process we have put in place, with 12 well-qualified international bidders competing. We look forward to working with ACWA on this and its other exciting projects in our country.”

For this project, ACWA Power Wind Karatau FE, an affiliate of ACWA Power, signed a 25-year power purchase agreement  with JSC National Electric Grid of Uzbekistan.

Additionally, ACWA Power Wind Karatau FE and ACWA Power have signed the government support agreement with the Uzbekistan government.

The Nukus wind project is expected to further strengthen ACWA Power’s presence in the Uzbek energy sector.

It is the fourth project for ACWA Power in the country after the $1.2bn Sirdarya project, a 1.5GW combined cycle gas-turbinepower plant, the 500MW Bash facility, and $1.3bn Djankedly wind power project in Bukhara.

ACWA Power chairman Mohammad Abunayyan said: “We are delighted to continue our expansion in Uzbekistan.

“The signing of the power purchase agreement for the Nukus wind farm is yet another landmark achievement for the country and for our company, as it reinforces our growing relationship with the Uzbek government and our commitment to accelerating the country’s energy transition.”

Nukus wind project is expected to support Uzbekistan government’s efforts to expand energy mix by increasing its renewable energy capacity. The government has set a target to achieve 8GW from solar and wind energy by 2026.

Financial close for Nukus wind farm is expected to take place in the third quarter of next year and its commercial operation is planned in 2024.

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Free Report
img

Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
by GlobalData
Enter your details here to receive your free Report.

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