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ACWA Power and Larsen & Toubro to Develop $1.7 Billion Solar Power Plants in Uzbekistan
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Saudi Arabian ACWA Power and Indian conglomerate Larsen & Toubro (L&T) have secured agreements to invest $1.7 billion in the construction of two solar photovoltaic (PV) power plants in Uzbekistan’s Samarkand region. The projects represent a notable step towards Uzbekistan’s aspiring renewable energy goals.
Project Details and investment Breakdown
The agreements,signed on October 6,2023,involve the construction of two 500 MW solar PV plants,totaling 1 GW of capacity.UzDaily.uz reports that the total investment will reach $1.7 billion. ACWA Power will hold a 75% stake in the projects, while L&T will take the remaining 25%.
The projects will be financed through a combination of equity and debt, with financial close expected in the coming months. The power purchase agreements (PPAs) have been secured with the national Electric Grid of Uzbekistan (NEGU) for a period of 25 years. This long-term commitment provides revenue stability for the project developers.
Uzbekistan’s Renewable Energy Ambitions
Uzbekistan is actively pursuing a transition to renewable energy sources. The country aims to generate 25% of its electricity from renewable sources by 2030, as outlined in its national energy strategy. The International Energy Agency (IEA) highlights Uzbekistan’s significant solar and wind energy potential.
Currently, Uzbekistan’s energy mix is heavily reliant on natural gas. Diversifying into solar and wind power will enhance energy security, reduce carbon emissions, and attract foreign investment. The government has been actively seeking partnerships with international companies to develop renewable energy projects.
Prior to this agreement, Uzbekistan has already commissioned several solar power plants, including the 100 MW Nur Navoi solar plant and the 100 MW gissar solar plant. These projects demonstrate the country’s commitment to renewable energy development.
ACWA Power and L&T: Key Players in the Renewable Sector
ACWA Power is a leading Saudi Arabian developer, owner, and operator of power generation and desalinated water plants. The company has a strong track record in developing large-scale renewable energy projects across the Middle East, Africa, and Asia. ACWA Power’s website provides further details on their portfolio.
Larsen & Toubro (L&T) is a major indian multinational conglomerate with expertise in engineering, construction, manufacturing, technology, and financial services.L&T’s Power Transmission & Distribution Business is actively involved in the development of renewable energy infrastructure. L&T’s corporate website details their capabilities.
Impact on the Samarkand Region and Uzbekistan
The construction of these solar power plants will create numerous jobs in the Samarkand region, both during the construction phase and in ongoing operations and maintenance. The projects will also contribute to the economic development of the region by attracting investment and boosting local businesses.
From a national perspective, the increased renewable energy capacity will reduce Uzbekistan’s dependence on imported fossil fuels, improving its energy independence and balance
