- ACWA Power plans $5B investment, part of a $15B goal in Uzbekistan.
- 8 out of 19 projects focus on renewable energy development.
- Uzbekistan to start green hydrogen production, aims for 20GW by 2030.
ACWA Power, one of Saudi Arabia’s leading utility firms, will invest $5 billion, solidifying its position as the largest foreign investor in the energy sector in Uzbekistan, according to a senior official.
While speaking at the Tashkent International Investment Forum, Soumendra Rout, ACWA Power’s country head for Uzbekistan, stated that this proposed $5 billion agreement forms part of a greater plan to increase overall investments in Uzbekistan to $15 billion, according to UZ Daily.
ACWA Power is the largest foreign investor in Uzbekistan's energy sector and has conducted 19 projects in the country valued at $5 billion in total. Among these 19 projects, eight address renewable energy, in line with Uzbekistan's goal of 40% of the electricity in the country to come from renewable sources by the end of the decade.
At the forum, Rout also mentioned that funding of sustainable economic growth is incredibly advantageous through Islamic finance instruments, especially for SMEs. He added that Shariah-compliant financing methods can be much more effective in supporting SMEs than traditional financing instruments.
“We are ready to share our experience with Uzbekistan and contribute to building a more inclusive financial system,” said Rout.
At the forum, Abid Malik, ACWA Power's president for Central Asia, announced that Uzbekistan is ready to localize the production of wind turbine components, such as blades and turbines. Malik explained that ACWA Power is collaborating with suppliers and intends to provide technical assistance to local companies involved with renewable projects in Uzbekistan.
Also Read: DDEL Partners to Boost Green Hydrogen in India, Thailand
Currently, ACWA Power is working with its turbine vendor on the 200-megawatt wind energy project in Karakalpakstan to help it localize production infrastructure in Uzbekistan.
“Our supplier is planning to begin production of wind turbines and blades within the country in the near future,” added Malik.
He also said that Uzbekistan will start producing green hydrogen this month, with a yearly capacity of production capacity of 3,000 tonnes.
“We believe this will elevate Uzbekistan’s position on the global green hydrogen map,” said Malik.
In 2023, the president of Uzbekistan, Shavkat Mirziyoyev, initiated a pilot green hydrogen plant in the Tashkent Region in collaboration with ACWA Power. The $88 million initiative is being executed in two stages, with output from the initial phase anticipated to start this month.
The generation of green hydrogen supports Uzbekistan’s aim to reach 20 gigawatts of renewable energy capacity by 2030. The nation is focusing on increasing solar, wind, and hydroelectric energy, utilizing its natural resources to reduce dependence on fossil fuels.