1 October 2024, Tue |
2:30 AM
Saudi-listed ACWA Power, the private water desalination company, has signed a joint development agreement with Japan’s Sumitomo Corporation to develop key renewable energy and storage projects in Uzbekistan. Sumitomo, a Fortune 500 company, will collaborate on large-scale solar and wind projects with integrated battery energy storage systems (BESS).
The projects, valued at a combined $4.2 billion, include two major developments: Sazagan 1 and 2 in Samarkand, each comprising 500MW solar photovoltaic (PV) plants and 334MW BESS, with commercial operations expected between Q2 2026 and Q2 2027. Additionally, the Kungrad 1, 2, and 3 wind projects in Karakalpakstan will feature 500MW wind power plants and 100MW BESS, set to begin operations in Q2 2028.
Under the agreement, ACWA Power will divest 49% of its stake in these projects to Sumitomo Corporation. This partnership builds on previous collaborations announced during the Saudi-Japan Vision 2030 Business Forum, which promotes cooperation in renewable energy and water solutions.
ACWA Power’s Chief Investment and Development Officer, Thomas Brostrom, highlighted the strategic importance of the agreement: “Integrating battery storage with our solar and wind projects enhances grid reliability and maximizes renewable potential. Our investments in Uzbekistan reflect our commitment to supporting the country’s ambitious energy transition.”
JP Tiwari, Vice President & Head of Business Development for Central Asia, Caucasus, and Turkey at ACWA Power, emphasized Uzbekistan’s role as the company’s second-largest market. He noted that these projects would contribute significantly to the nation’s sustainable energy goals, providing accessible, affordable, and clean energy.
Koichi Taniguchi, General Manager of Overseas Energy Solution at Sumitomo Corporation, expressed enthusiasm for the partnership: “This collaboration supports Uzbekistan’s energy transition while contributing to local communities’ sustainable growth.”
These landmark projects reinforce Uzbekistan’s growing prominence as a leader in clean energy and sustainable development in the region.
