• Business

Two wind power projects in Uzbekistan have secured a loan of $174 million for ACWA Power.

by Swati Gupta

April 25, 2023 1

ACWA Power, a leading developer, owner, and operator of power generation and water desalination plants in the Middle East and Africa, has secured a $174 million loan for two wind power projects in Uzbekistan.

The loan was provided by a consortium of lenders, including the Islamic Development Bank (IDB), the Asian Infrastructure Investment Bank (AIIB), and the European Bank for Reconstruction and Development (EBRD).

The two wind power projects, located in the Karakalpakstan and Navoi regions of Uzbekistan, will have a total capacity of 250 MW and are expected to provide clean, reliable, and affordable electricity to the country.

The Karakalpakstan wind power project will have a capacity of 150 MW and will be located near the city of Nukus. The Navoi wind power project, on the other hand, will have a capacity of 100 MW and will be located near the city of Navoi.

The two projects are part of the Uzbekistan government’s ambitious plans to increase the share of renewable energy in the country’s energy mix. Uzbekistan has set a target of generating 25% of its electricity from renewable sources by 2030, up from the current level of less than 1%.

The wind power projects are also expected to have a significant positive impact on the environment. By generating clean electricity, the projects will help to reduce Uzbekistan’s dependence on fossil fuels and decrease greenhouse gas emissions.

ACWA Power is one of the leading developers of renewable energy projects in the Middle East and Africa, with a portfolio of over 30 GW of power generation and water desalination plants. The company has a strong track record of delivering large-scale projects on time and on budget.

Commenting on the loan, Paddy Padmanathan, President and CEO of ACWA Power, said: “We are delighted to have secured this loan for our wind power projects in Uzbekistan. This is an important milestone for us and for Uzbekistan as it moves towards a more sustainable and secure energy future. We are grateful to our partners, the IDB, AIIB, and EBRD, for their support in making these projects a reality.”

The loan agreement was signed at a ceremony in Tashkent, the capital of Uzbekistan, on Tuesday, August 10. The ceremony was attended by representatives from ACWA Power, the IDB, AIIB, and EBRD, as well as government officials from Uzbekistan.

The project is also expected to have a significant positive impact on the local economy. The construction and operation of the wind power projects will create jobs and provide economic opportunities for local communities.

In conclusion, the $174 million loan secured by ACWA Power for two wind power projects in Uzbekistan is an important step forward in the country’s efforts to increase the share of renewable energy in its energy mix. The projects are expected to provide clean, reliable, and affordable electricity to the country and have a significant positive impact on the environment. With ACWA Power’s expertise in renewable energy and the support of its partners, the IDB, AIIB, and EBRD, the projects are expected to be a success and contribute to the economic development of the region.