ACWA, Sumitomo to develop $4.2b renewable energy projects in Uzbekistan

Solar, wind, and energy storage projects will be built.

ACWA Power and Sumitomo Corp. have signed a $4.2b agreement to build Uzbekistan's largest renewable energy generation and storage facilities.

According to the Saudi-based company, the first set of projects, Sazagan 1 and 2, will be in Samarkand. Each will have a 500-megawatt solar photovoltaic plant and a 334-MW battery energy storage system (BESS). 

Commercial operation is expected between second quarter (Q2) of 2026 and Q2 2027.

The companies will also build Kungrad 1, 2 and 3 wind projects in the Republic of Karakalpakstan. Each of these will have 500 MW wind power plant and 100 MW BESS, with commissioning planned in Q2 2028.

The joint development agreement will see ACWA Power divest 49% of its stake in the Samarkand and Kungrad projects to Sumitomo Corporation. 

“Integrating battery storage with our solar and wind projects in Samarkand and Kungrad enhances grid reliability and maximises renewable potential,” ACWA Power Chief Investment Officer Thomas Brostrom said. 

He said this agreement aligns with the company’s growing Uzbekistan portfolio, which includes wind power plants and the country’s first green hydrogen plant that will produce 3,000 metric tonnes of green hydrogen per year. 

Koichi Taniguchi, general manager of Overseas Energy Solution SBU, Sumitomo Corporation, also said the agreement aligns with the Japanese firm’s “target in power generation business to provide a stable supply of the energy, essential for the economic and industrial development of local communities, through the projects which are in line with host countries’ energy transition policy.”