ACWA Power has bid the lowest tariff for the construction and operation of a 100 MW wind power project in Uzbekistan, with a tariff of US$ 2.5695 cents per kilowatt hour. The European Bank for Reconstruction and Development (EBRD) supported the tender by providing technical assistance.
The new plant, located in the Qoraoʻzak District, will diversify energy supply and increase energy security while delivering climate-neutral energy at an affordable price. The district is located in the Republic of Karakalpakstan, an autonomous republic within Uzbekistan, in the north west of the country.
ACWA Power is a global developer, investor and operator of power plants, with 64 assets in operation, construction or advanced development across 13 countries.
Aida Sitdikova, EBRD Director, Energy Eurasia, Middle East and Africa, said: “The tender is a landmark for Uzbekistan – the first competitively procured wind power plant in the country. The tariff achieved represents a major success for the country’s power sector and shows what a combination of ambitious policy targets and proper competition can achieve.”
The tender is part of the authorities’ efforts to increase the share of renewable energy in the Uzbekistan’s power-generation mix. The government has set itself an ambitious target of installing 5,000 MW of solar and 3,000 MW of wind energy by 2030. By achieving these targets, Uzbekistan will meet the objective of renewables accounting for more than a quarter of the country’s power-generation capacity by 2030.
Alkis Vryenios Drakinos, EBRD Director, Head of Uzbekistan said: “The tender marks a number of firsts. Not only is it the first competitively procured wind power project in Uzbekistan, it is also the first renewable energy project to be procured under the new public-private partnership law. We are proud to support Uzbekistan in delivering on its ambitious goals for a greener and more sustainable energy sector.”
The EBRD has been providing assistance to the Ministry of Energy, Ministry of Finance and the Ministry of Investment and Foreign Trade for the preparation and procurement of the project. This technical assistance was supported by donor funds from the government of Japan. The support for the 100 MW wind project is the first phase of a wider programme under which the Bank is supporting the government of Uzbekistan in developing wind power capacity across the country.
To date, the EBRD has invested almost €2.6 billion in 101 projects in Uzbekistan.