The Ministry of Energy of Uzbekistan has finalized a binding agreement with Saudi Arabia’s ACWA Power, a global leader in renewable energy and green hydrogen development, to advance battery energy storage system (BESS) projects. The agreement, officially called an Implementation Agreement (IA), was signed during the United Nations COP29 climate conference in Baku, Azerbaijan.
Under this deal, ACWA Power will have contractual priority to develop standalone BESS projects with a total capacity of up to 2GWh. This initiative aims to enable competitive energy tariffs and strengthen Uzbekistan’s renewable energy ambitions. The agreement is initially valid for two years, with an option for extension through mutual consent.
The signing ceremony was attended by notable leaders, including Saudi Energy Minister Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, Uzbek President Shavkat Mirziyoyev, and Azerbaijan President Ilham Aliyev, emphasizing the significance of this collaboration.
This partnership follows a broader joint executive program initiated at COP29 to promote renewable energy development among Saudi Arabia, Uzbekistan, Azerbaijan, and Kazakhstan. ACWA Power’s latest agreement builds on its established presence in Uzbekistan, where it has already spearheaded several renewable energy projects.
In March 2023, ACWA Power signed agreements to develop 1.4GW of solar photovoltaic (PV) and 1.2GW of energy storage projects. These initiatives, financed by Uzbekistan’s Ministry of Investment, Industry, and Trade, reflect the country’s commitment to clean energy.
Subsequently, ACWA Power signed power purchase agreements (PPA) for two solar projects and three BESS projects earlier this year. To further strengthen its portfolio, the company secured a $240 million Islamic Equity Bridge Loan (EBL) in partnership with the World Bank’s International Finance Corporation (IFC) in November 2023.
Raad Al Saady, vice chair and managing director of ACWA Power, described the agreement as a key milestone, noting the company’s position as the largest investor in Uzbekistan’s energy sector, with over 13GW of projects under development. This collaboration, he said, represents a shared vision for a sustainable and energy-efficient future.
Uzbekistan is ambitiously targeting 25GW of solar and wind capacity by 2030, along with 2GW of hydroelectric power. This would increase the nation’s total renewable energy capacity to 27GW, a significant leap from its current capacity of approximately 2,300MW, which includes hydro and solar energy.
In addition to ACWA Power, Uzbekistan has partnered with UAE-based developer Masdar for renewable energy and energy storage projects. Among them is a groundbreaking 250MW solar PV and 63MW BESS hybrid project, which will be Central Asia’s first grid-connected renewables project integrating battery storage.
Uzbekistan’s commitment to renewable energy development, highlighted by this binding agreement, reinforces its role as a leader in Central Asia’s clean energy transformation. With strategic partnerships and ambitious targets, the nation is paving the way toward a sustainable energy future.
