Uzbekistan is making strides in energy efficiency and sustainability with the construction of a $1.02 bn combined-cycle gas turbine (CCGT) power plant in the Syrdarya region. This cutting-edge project, a collaboration between Ipoteka Bank and ACWA Power Syrdarya (APS), is poised to transform Uzbekistan’s energy landscape, contributing to the country’s economic and environmental goals. In an interview with Daryo Irakli Elashvili, advisor to Ipoteka Bank's Chairman of the Board and Ahsen Saaed, CFO of ACWA Power Central Asia spoke on the project details and impact on the country.
Transforming Uzbekistan’s Energy Sector
The 1,500 MW CCGT power plant will be among the most advanced in Uzbekistan, with an impressive efficiency rate of 60.8%. Leveraging the latest JAC series turbines, the plant will reduce natural gas consumption by over 40% compared to traditional facilities, significantly lowering costs and emissions. The project also aligns with Uzbekistan’s green energy goals, reducing carbon emissions by 200,000 cubic meters annually.
“This project is not just about energy generation; it’s about efficiency, innovation, and sustainability,” said Ahsen Saeed, CFO of ACWA Power Central Asia. “The turbines feature optimized aerodynamics and advanced combustion systems, delivering better performance with lower emissions.”
Economic and Workforce Development
In addition to environmental benefits, the project will create more than 1,000 jobs for local workers. “We are not just creating jobs; we’re developing talent,” added Saeed. “Through a partnership with Shirin College, we are providing vocational training to equip local workers with the skills needed for the energy sector. This includes empowering women, with our first group of five female graduates already employed by ACWA Power.”
The initiative also encourages professionals from Uzbekistan working abroad to return. “We’ve seen talented individuals coming back from countries like the UK and Malaysia to join ACWA Power, thanks to the growth opportunities in Uzbekistan,” Saeed explained.
Ipoteka Bank’s Role in Financing Innovation
Ipoteka Bank has played a pivotal role in financing the project, providing a $40 million working capital facility (WCF). This marks a milestone as the first instance of such project financing from a local Uzbek bank. “This partnership sets a new standard for Uzbekistan’s banking sector,” said Irakli Elashvili, Advisor to the Chairman of Ipoteka Bank. “We hope this deal inspires other banks to follow suit and support transformative projects like this one.”
Backed by OTP Group, Ipoteka Bank brings global expertise to Uzbekistan. “Uzbekistan is a reforming and growing economy, and we see immense potential here,” Elashvili said. “We aim to introduce new financial products tailored to local needs while leveraging our international capabilities.”
A Foundation for Future Green Energy Projects
This collaboration goes beyond the Syrdarya project. Both ACWA Power and Ipoteka Bank are working on additional long-term financing solutions to support renewable energy initiatives in Uzbekistan. “Our relationship with Ipoteka Bank is growing, and we see this as a trendsetter for the banking market in Uzbekistan,” Saeed noted.
Elashvili emphasized the bank’s commitment to green energy: “This is just the start. We are dedicated to supporting ACWA Power’s renewable energy strategy in Uzbekistan and beyond.”
Global Support for Uzbekistan’s Energy Future
The project is supported by senior lenders, including the European Bank for Reconstruction and Development (EBRD), DEG, the OPEC Fund for International Development, the Asian Infrastructure Investment Bank (AIIB), and commercial banks. This global backing ensures a solid financial foundation and long-term sustainability for the project.
Key Benefits of the ACWA Power Syrdarya Project
•Energy Efficiency: The plant’s advanced technology delivers a 60.8% efficiency rate, reducing natural gas usage by 40%.
•Environmental Impact: Carbon emissions will be cut by 200,000 cubic meters annually, aligning with Uzbekistan’s green energy targets.
•Job Creation: Over 1,000 jobs for local workers, coupled with vocational training programs.
•Economic Growth: Involvement of local companies such as East West Engineering, UzAssystem, and Uzelektroapparat strengthens the regional economy.
Uzbekistan as a Hub for Energy Innovation
This partnership between Ipoteka Bank and ACWA Power sets a precedent for sustainable development in Uzbekistan. By combining global expertise with local talent, the project showcases Uzbekistan’s potential as a hub for energy innovation.
“This collaboration is not just about meeting today’s energy needs but also about setting the foundation for a greener, more sustainable future,” Elashvili concluded.
Watch the full interview:
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