Saudi utility developer ACWA Power on Wednesday is set to sign an agreement valued at around $2.4 billion to build a 1500MW wind project in Uzbekistan.

The Heads of Terms agreement will be signed with Uzbekistan’s Ministry of Energy and Ministry of Investment & Foreign Trade, said the utility, partly owned by the Saudi sovereign wealth fund PIF. 

The project is expected to achieve financial close by the end of 2023 and be fully commissioned by the first quarter of 2026, ACWA said in a disclosure on Tadawul bourse on Wednesday.

Once complete, this project would be the biggest single site onshore wind project in the region and will contribute 19% to Uzbekistan’s overall renewable energy goals, ACWA said.

The facility is expected to power 1.65 million households and offset 2.4 million tonnes of carbon emissions per year.

The financial impact of the deal is expected to be reflected in 4Q-2023.

(Writing by Brinda Darasha; editing by Seban Scaria)