ACWA Power, a leading Saudi-listed company known for its expertise in water desalination and energy transition, has entered into a joint development agreement with Japan’s Sumitomo Corporation, a Fortune 500 trading and business investment firm. This partnership aims to develop significant renewable energy generation and storage projects in Uzbekistan.
The projects, known as Sazagan 1 and 2, are situated in Samarkand and each comprises 500MW solar photovoltaic (PV) systems along with 334MW battery energy storage systems (BESS). Both sub-projects are anticipated to commence commercial operations between Q2 2026 and Q2 2027.
Additionally, the collaboration will include the Kungrad 1, 2, and 3 wind projects, located in the Republic of Karakalpakstan. Each of these projects will feature a 500MW wind power plant paired with a 100MW BESS, with commissioning scheduled for Q2 2028. The combined investment for the projects in Samarkand and Kungrad amounts to USD 4.2 billion, marking them as some of the largest clean energy and storage initiatives in Uzbekistan.
Under the terms of the joint development agreement, ACWA Power will divest 49% of its stake in the Samarkand and Kungrad projects to Sumitomo Corporation. This agreement follows earlier collaborations announced in May 2024 at the Saudi-Japan Vision 2030 Business Forum, which promoted cooperation in renewable energy and water solutions.
This joint development agreement with Sumitomo Corporation showcases ACWA Power's commitment to supporting Uzbekistan's impressive and ambitious energy transition,
He emphasized that integrating battery storage with solar and wind projects enhances grid reliability and maximizes renewable potential. Brostrom also noted that this partnership aligns with ACWA Power’s expanding portfolio in Uzbekistan, which includes wind power plants in various regions and the country’s first green hydrogen plant, projected to produce 3,000 metric tons of green hydrogen per year.
JP Tiwari, Vice President & Head of Business Development Central Asia, Caucasus, Turkey, ACWA Power, remarked, “Uzbekistan is ACWA Power's second-largest market in terms of investments, demonstrating our ongoing commitment to the country's energy transition and sustainable development targets. By leveraging our partnership with Sumitomo Corporation, we are further cementing this commitment as we pursue the largest clean energy projects in the country, providing accessible, affordable, and sustainable energy for the people of Uzbekistan.”
This joint development of remarkable renewable projects in Uzbekistan in collaboration with ACWA Power aligns with our company’s target in the power generation business to provide a stable supply of energy, essential for the economic and industrial development of local communities. We aim to contribute to the sustainable growth of the country and communities in Uzbekistan through this collaboration with ACWA Power.
Koichi Taniguchi, General Manager of the Overseas Energy Solution SBU at Sumitomo Corporation, stated.
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