ACWA Power unveils $10b clean energy and financing agreements

The investment covers projects in China and Central Asia, amongst others.

ACWA Power has inked a series of landmark agreements worth $10b, covering energy projects across multiple regions.

According to the company, the projects will be located in various areas, including China, and Central Asia to name few.

One of the partnerships is with Water and Electricity Holding Company (Badeel), a wholly owned company of PIF, and Saudi Aramco for a total investment of $6.0b. The projects are developed under the National Renewable Energy Program (NREP) led by the Ministry of Energy and part of PIF’s commitment to develop 70% of the national renewable energy targets by 2030, and will supply clean electricity to the Saudi Power Procurement Company (SPPC) as the procurer and off-taker for the development of the projects, under long-term power purchase agreements (PPAs).

For Uzbekistan, ACWA Power inked a $100m green equity bridge financing agreements for the Kungrad 123 Wind and Battery Energy Storage Project in the Republic of Karakalpakstan. This financing was secured from Sumitomo Mitsui Banking Corporation (SMBC) on a shariah compliant basis and is ACWA Power’s maiden equity bridge facility with SMBC for a project outside GCC.

The project, developed under a Build, Own, Operate and Transfer (BOOT) structure, comprises 1,500 megawatts (MW) of wind capacity and over 300 megawatt-hours (MWh) each of battery energy storage systems (BESS) capacity, spread across three co-located wind farms in the Kungrad region. It also includes 1,444 kilometres of 500 kV transmission lines, three new switching stations, and upgrades to two existing ones.

Once operational, Kungrad 123 will supply clean energy to 1.6 million households, and offset 2.5 million tonnes of CO₂ annually.

ACWA Power also signed $1.8b project financing agreements with a consortium of leading international banks and equity partners for the Samarkand Solar and Battery Energy Storage Project in Uzbekistan, the country’s largest solar project to date. The agreements were signed alongside project partners Sumitomo Corporation, Chubu Electric Power Co., Inc., and Shikoku Electric Power Co., Inc.

The project is located in Samarkand and Bukhara regions, and is being developed under a 25-year Power Purchase Agreement (PPA) with Uzbekistan’s state-owned National Electric Grid of Uzbekistan. This will have two 500 MW solar photovoltaic plants and two BESS with a combined capacity of 1,336 MWh.

This also covers the development of over 500 kilometers of 220 kV and 500 kV transmission lines and two new substations that will enhance grid stability and connectivity. Once operational, it will supply clean electricity to approximately 600,000 households, offsetting 1.4 million tonnes of CO₂ emissions annually.

Meanwhile, ACWA Power has appointed Larsen & Toubro (L&T) as the preferred EPC contractor of teh 300 MW Bash 2 Wind Project in the Bukhara region. The project, which follows a 25-year Power Purchase Agreement with the National Electricity Grid of Uzbekistan (NEGU), includes 39 wind turbines, associated infrastructure, and a purchaser electrical facility with a 500 kV overhead transmission line.

With a total investment of $360m, the project will generate enough electricity for approximately 438,000 households, offsetting 630,000 tonnes of CO₂ annually.

The company also announced the commercial commissioning of the Karatau Wind 100 MW Project in the Qorao’zak and Beruniy districts of Karakalpakstan, Uzbekistan. The project comprises 16 wind turbines of 6.5 MW each, a 15.4 km overhead transmission line, and a 220 kV substation, with associated Balance of Plant facilities.

Electricity will be supplied under a 25-year Power Purchase Agreement to NEGU.

ACWA Power also signed a financing partnership with Sumitomo Mitsui Banking Corporation (SMBC) to establish a $100m Export Bridge Loan (EBL) facility, which makes it ACWA Power’s first such facility with SMBC outside the GCC. The facility will support the 1.5 GW Kungrad Wind Power Project in Uzbekistan.

ACWA Power also signed three Framework Agreements with leading Chinese wind technology companies, Goldwind Science & Technology, Envision Energy, and Mingyang Smart Energy, to accelerate innovation, local manufacturing, and technology transfer across Saudi Arabia, Uzbekistan, China, and other key markets.

The partnerships will focus on boosting wind turbine efficiency, promoting local content in line with Vision 2030, and exploring joint project development in emerging economies.