The Ministry of Energy has signed an agreement with ACWA Power on the construction of a wind farm in Karakalpakstan.
The power plant with a capacity of 100 MW will be located not far from Nukus. The project is estimated at $108 million. JSC National Electric Grids of Uzbekistan will purchase electricity from the ACWA Power subsidiary for 25 years.
According to the Ministry of Energy, this project will be the first in Uzbekistan, the investor of which has been selected through an open tender. The Saudi company offered the lowest tariff in September - 2.5695 cents per 1 kWh.
For ACWA Power, the project will be the fourth in Uzbekistan. The company is building another 1,500 MW wind farm in Karakalpakstan. It is also working on two wind farms in Bukhara and Navoi regions with a combined capacity of 1,000 MW.
In addition, ACWA Power is participating in the creation of a highly efficient 1,500 MW gas-fired power plant in Syrdarya. In November, AIIB allocated a loan of $100 million for its construction.