Saudi ACWA Power unit signs $108mln PPAs with Uzbekistan wind farm

Proposed tariff of $2.5695/kilowatt hour

  
Offshore wind farm UK in southern North Sea. Image used for illustrative purpose.

Offshore wind farm UK in southern North Sea. Image used for illustrative purpose.

Getty Images/Davee Hughes UK

Saudi Arabia's ACWA Power affiliate, ACWA Power Wind Karatau, has signed power purchase agreements (PPAs) worth $108 million with Nukus Wind JSC National Electric Grid of Uzbekistan (NEGU) for its 100-megawatt (MW) Nukus wind project in Uzbekistan.

ACWA Power, which is partly owned by Saudi Arabia's sovereign Public Investment Fund, said in a bourse filing on Sunday that its unit won the 25-year contract after proposing a tariff of $2.5695/kilowatt hour (kwh).

The Nukus farm is the first wind project developed through public tendering process in Uzbekistan and has the lowest tariff for wind energy projects in the country, according to ACWA Power. It is also the first renewable energy project in Uzbekistan governed by the new PPP law.

The financial impact of the contract is expected to show in Q1 2024, the company noted.

ACWA Power is also building a 1,500 MW wind farm in Karakalpakstan. It is also working on two wind power projects in Bukhara and Navoi with a combined capacity of 1,000 MW.

(Reporting by Brinda Darasha; editing by Seban Scaria) 

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