ACWA Power has been the top investor in Uzbekistan's growing energy sector, driving its shift towards sustainability. At the Tashkent International Investment Forum 2024 (TIIF-2024), ACWA Power CEO Marco Arcelli shared plans for green energy projects in an interview with Daryo.
Arcelli, whose company has been a key player in Uzbekistan's renewable energy sector, discussed ACWA Power's latest endeavors, highlighting an agreement for the construction of 5 gigawatts (GW) of wind plants. This initiative is set to bolster ACWA Power's investment in Uzbekistan to over 11 GW, amounting to more than $13bn.
Of particular note was the inauguration of a 1500-megawatt gas-fired power plant, strategically positioned to address winter demand peaks. This complements ACWA Power's ongoing efforts in solar energy, which notably peaks during the summer months, ensuring a reliable and stable energy supply throughout the year.
Arcelli emphasized the importance of decarbonizing Uzbekistan's economy, citing the European Union's implementation of a carbon border adjustment mechanism. By spearheading decarbonization efforts, Uzbekistan stands to gain a competitive advantage in global trade, positioning itself as a leader in sustainable development.
“We're basically providing a very reliable, very stable offer to Uzbekistan that will decarbonize the economy. And we think that this is particularly important because with Europe putting up the carbon border adjustment mechanism, that means that if you don't decarbonize, you will pay a tax to export your goods,” Arcelli voiced.
Regarding the future of Uzbekistan's electrical sphere, Arcelli praised the government's proactive approach, noting the ongoing expansion of the grid to accommodate increased capacity. He also highlighted recent collaborations with neighboring countries, such as Azerbaijan and Kazakhstan, exploring the potential for electricity exports to Europe via the Caspian and Black Seas.
“The Uzbekistan government has been really rolling out a great program and I think today most of the projects that need to be realized have been launched in a way. I know that they are working on the grid which basically needs to absorb all this new capacity and reinforce this to support all the growth in the economy that is expected,” Arcelli remarked.
In addition to conventional renewable energy projects, Arcelli discussed ACWA Power's foray into green hydrogen production. By leveraging renewable energy sources, the company aims to revolutionize industries reliant on fossil fuels, such as fertilizer production, paving the way for a more sustainable future.
The interview underscored the interconnectedness of various energy initiatives and the pivotal role of forums like the Tashkent International Investment Forum in driving progress. Arcelli commended Uzbekistan's remarkable growth in foreign direct investment, citing the forum as a catalyst for attracting further investment and showcasing the nation's rapid advancement in the renewable energy sector.
“This year I was really impressed by the increase in the number of participants and many more nationalities from all over. We saw and we heard from the president very high numbers of results already achieved until today with billions and billions invested and growth I think the last two years they [foreign direct investment] doubled.
ACWA Power's overall investment portfolio in Uzbekistan now stands at 11.6 gigawatts (GW) of power generation capacity, with an impressive 10.1 GW attributed to renewable energy sources. Additionally, the company has initiated Uzbekistan's maiden green hydrogen venture, boasting a capacity of 3,000 tonnes annually.
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