Riyadh – Mubasher: ACWA Power Company penned a joint development agreement with Japan’s Sumitomo Corporation to develop key renewable energy generation and storage projects in Uzbekistan.
Located in Samarkand, the projects include Sazagan 1 and 2, each consisting of 500 megawatts (MW) of solar photovoltaic (PV) and 334MW battery energy storage systems (BESS).
Both sub-projects are expected to achieve commercial operations between the second quarter (Q2) of 2026 and (Q2) of 2027.
Another second set of projects includes Kungrad 1, 2 and 3 wind projects, located in the Republic of Karakalpakstan in Uzbekistan.
Each sub-project comprises of 500MW wind power plant and 100MW BESS, with commissioning planned in Q2-28.
The projects in Samarkand and Kungrad have a combined investment value of $4.20 billion.
Under the joint deal, ACWA Power will divest 49% of its stake in the Samarkand and Kungrad projects to Sumitomo Corporation.
The partnership follows agreements announced in May 2024 on the sidelines of the Saudi-Japan Vision 2030 Business Forum, which drived collaboration on renewable energy and water solutions.
Thomas Brostrom, Chief Investment and Development Officer at ACWA Power, said: "Integrating battery storage with our solar and wind projects in Samarkand and Kungrad enhances grid reliability and maximises renewable potential.”
“The agreement also aligns with our growing Uzbekistan portfolio, which includes wind power plants in multiple regions and the country’s first green hydrogen plant that will produce 3,000 metric tons of green hydrogen per year," Brostrom added.
Koichi Taniguchi, General Manager of Overseas Energy Solution SBU, Sumitomo Corporation, noted: “We aim to contribute to the sustainable growth of the country and communities in Uzbekistan through this collaboration with ACWA Power.”
Last July, the Saudi group sold 35% of its stake in ACWA Power Bash Wind Project Holding and ACWA Power Uzbekistan Wind Project Holding to China Southern Power Grid International.
