Saudi’s Acwa Power signs wind power project purchase deal with Uzbekistan

Saudi’s Acwa Power signs wind power project purchase deal with Uzbekistan
Source: The National

Saudi Arabia’s Acwa Power has signed a power purchase agreement with the National Electric Grid of Uzbekistan for three wind power special purpose vehicles to develop the country’s $2.4 billion Kungrad wind farm.

The power purchase agreement covers three wind power plants in the Kungrad district with a capacity of 500 megawatts each and was signed on December 23, the company said.

The farm, located in the north-western Karakalpakstan region of Uzbekistan, is expected to offset 2.4 million tonnes of carbon emissions per year and power 1.65 million homes when the project is completed, Acwa Power said in a filing to the Tadawul stock exchange on Sunday.

The contract covers the development, construction and operation of the project, with a contract duration of 25 years from the completion of construction.

The financial impact of the contracted revenue is expected once the project reaches its Project Commercial Operating Date (PCOD) in the third quarter of 2027, Acwa Power said. Under a long-term power purchase agreement, this date is when the commissioning tests have been passed and the facility starts to generate power to earn revenue.

The power purchase agreement builds on the company’s “heads of terms agreement” in August to develop the largest single onshore wind project in Central Asia in Uzbekistan’s Karakalpakstan region with a total capacity of 1.5 gigawatts.

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