Saudi energy firm Acwa Power has executed a $2.4bn power purchase agreement (PPA) with the National Electric Grid of Uzbekistan (NEGU).
Under the agreement, ACWA Power acquired three wind power special purpose vehicles (SPVs) to develop the 1.5GW Kungrad wind farm.
The company noted that the 1.5GW project is split into three project companies, where each company at the site each developing will be responsible for developing a 500MW wind power plant with three separate PPAs.
The scope of the agreement includes the development, construction, and operation of the wind farm project.
The contract will have a 25-year duration period once the construction is completed.
Previously called Karakalpakstan Wind IPP, Kungrad wind farm is claimed to be the largest single-site wind farm in Central Asia and one of the biggest in the world.
Once completed, the wind project will have the capacity to power 1.65 million households in the region while displacing 2.40 million tonnes of carbon emissions annually.
ACWA Power estimates that the contracted revenues to have a positive effect on its income statements once the scheme achieves the commercial operating date (PCOD) in the third quarter of 2027.
Last month, ACWA Power and the Water and Electricity Holding Company (badeel) agreed to build, own and operate a 2.06GW solar photovoltaic project in Saudi Arabia’s Makkah province.
Located in Al Shuaibah region, the Al Shuaibah II project will be owned equally by ACWA Power and Badeel, which is a subsidiary of the country’s Public Investment Fund (PIF). It will be ACWA Power’s sixth solar energy facility in Saudi Arabia.