ACWA Power signs a power purchase agreement with the Uzbek electricity grid for $2.4 billion

The Saudi ACWA Power Company announced today, Sunday, the signing of a power purchase contract with the Uzbek National Electric Grid for three special-purpose companies in wind power plants to construct a 1.5-gigawatt plant in the Kungrad region of the Republic of Karakalpakstan, Uzbekistan.

ACWA Power said in a statement on Tadawul Saudi Arabia that the value of the contract is $2.4 billion, and its duration is 25 years after construction is completed.

It expected the financial impact to begin after the start of commercial operation by the third quarter of 2027.

The company indicated that the project was divided into 3 project companies on site, each of which is developing a 500-megawatt wind power plant, and each of the project companies has entered into a separate power purchase agreement.

ACWA Power stated that the Kongrad wind farm, formerly known as the Karakalpakstan Independent Wind Power Plant, will be the largest single-site wind farm of its kind in Central Asia and one of the largest in the world.

It added that it is expected to reduce 2.4 million tons of carbon emissions annually and provide energy to 1.65 million households.