ACWA Power signs $2.4 B PPA in Uzbekistan
Saudi energy firm ACWA Power has executed a $2.4 B power purchase agreement (PPA) with the National Electric Grid of Uzbekistan (NEGU).
Image source: Power Technology
Uzbekistan: Saudi energy firm ACWA Power has executed a $2.4 B power purchase agreement (PPA) with the National Electric Grid of Uzbekistan (NEGU).
Under the agreement, ACWA Power acquired three wind power special purpose vehicles (SPVs) to develop the 1.5 GW Kungrad wind farm.
The company noted that the 1.5 GW project is split into three project companies, where each company at the site each developing will be responsible for developing a 500 MW wind power plant with three separate PPAs.
The scope of the agreement includes the development, construction, and operation of the wind farm project.
The contract will have a 25-year duration period once the construction is completed.
Previously called Karakalpakstan Wind IPP, Kungrad wind farm is claimed to be the largest single-site wind farm in Central Asia and one of the biggest in the world.
Once completed, the wind project will have the capacity to power 1.65 million households in the region while displacing 2.40 million tonnes of carbon emissions annually.
ACWA Power estimates that the contracted revenues to have a positive effect on its income statements once the scheme achieves the commercial operating date in the third quarter of 2027.
Source: Power Technology
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