Uzbekistan is taking a significant step towards renewable energy development with the approval of three major projects by Saudi Arabia's ACWA Power company. These projects, located in the Kungirot district of the Republic of Karakalpakstan, aim to harness wind power and enhance the country's electricity infrastructure.
The three approved projects include a 500 MW wind power station, a 100 MW electricity storage system, and an overhead power transmission network. To facilitate these initiatives, three joint ventures under the names Kungrad Wind 1, Kungrad Wind 2, and Kungrad Wind 3, have been established as limited liability companies.
ACWA Power, the investor behind these projects, is committed to attracting substantial direct investments. Specifically, the Kungrad Wind 1 project will draw an investment of $1,067mn, while each of the other two projects, Kungrad Wind 2 and Kungrad Wind 3, will secure $667mn in investment.
Under the terms of the agreement, Uzbekistan is set to purchase the electricity generated by these wind power stations with a guarantee. The investor is responsible for not only constructing the wind power plant but also developing a substation and laying electrical wires to connect it to the national power grid. Once completed, these assets will be transferred to "Uzbekistan National Electric Networks." To incentivize this substantial investment, the costs incurred for building the new substation and overhead transmission lines will be reimbursed over a 10-year period.
As Uzbekistan continues to embrace renewable energy and strengthen its electricity grid, it is poised to achieve its goals for a greener and more sustainable future.
Earlier Daryo reported that on September 30th, the Ministry of Energy arranged an educational visit for members of the media, journalists, and bloggers to a cutting-edge thermal power facility boasting an impressive 1500 MW capacity. This power plant, currently being built in the Syrdarya region, is a project led by Saudi Arabian firm "ACWA Power."
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