ACWA Power ramps up footprint in Uzbekistan with multibillion-dollar energy and green hydrogen push – interview

Kun.uz conducted an interview with Abid Malik, President of ACWA Power Central Asia, to discuss the Saudi developer’s rapidly expanding investments in Uzbekistan’s energy sector, which now span large-scale renewables, grid infrastructure, workforce training and the country’s first operational green hydrogen facility. Since entering the market in 2019–2020, ACWA Power has built a project pipeline worth about $15 billion and is aiming to raise that figure to roughly $25 billion by the end of the decade.

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“We did not initially realize the full scale of Uzbekistan’s potential,” Abid Malik said, adding that the company began with a single project but has since developed multiple wind, solar and thermal assets at various stages of implementation.

According to Abid Malik, ACWA Power currently has around 3,000 megawatts of generation capacity in operation, with additional projects under construction or in advanced development. The company is working with the Ministry of Energy and the Ministry of Investment and Finance on further expansion, including in green hydrogen.

Emissions reduction and grid constraints

The company official said renewable energy is becoming a central pillar of Uzbekistan’s decarburization strategy, as the country seeks to curb reliance on gas-fired generation. He cited a recently commissioned wind project in the Bukhara region with a capacity of about 1 gigawatt.

The facility, he said, is expected to supply electricity to around half a million households and prevent roughly two million tonnes of carbon dioxide emissions annually. “If this power were produced using gas or oil, those emissions would go straight into the atmosphere,” he said.

However, Abid Malik identified transmission infrastructure as one of the key constraints on faster renewable deployment. Unlike conventional power plants that are built close to demand centers, wind and solar projects must be located where natural conditions are optimal, often far from cities.

ACWA Power is therefore building long-distance transmission lines alongside its generation assets, in some cases stretching more than 1,000 kilometers, Abid Malik said. Grid modernization and dispatch systems are also critical for maintaining reliability as the share of renewable power increases.

Green hydrogen enters industrial use

Uzbekistan has also joined a small group of countries with operational green hydrogen facilities. Abid Malik said only three such projects are currently in service worldwide – in China, Spain and Uzbekistan.

The Uzbek facility produces about 3,000 tonnes of green hydrogen per year and supplies the fertilizer sector, which traditionally relies on natural gas as a feedstock. Replacing methane with green hydrogen could significantly reduce industrial emissions, Malik said.

He compared the current stage of hydrogen development to the early years of solar energy. “In 2012, solar power was extremely expensive. Today the cost is about ten times lower. We believe green hydrogen will follow a similar trajectory,” he noted.

Beyond fertilizers, Abid Malik pointed to possible future applications in heavy transport, public buses and industrial heating, using hydrogen fuel cells and related technologies.

International financing and local banks

ACWA Power’s projects in Uzbekistan involve a mix of multilateral financing, foreign equity partners and global technology suppliers. Malik said major lenders include institutions such as the European Bank for Reconstruction and Development, the Asian Development Bank and the International Finance Corporation, alongside Islamic finance providers.

Equity partners include Chinese and Japanese investors, while equipment is supplied by leading turbine, grid and energy storage manufacturers from Asia and Europe.

While most financing to date has come from international sources, Abid Malik said greater participation by Uzbekistan’s domestic banks will be needed as the scale of projects continues to grow. “The next phase will require deeper involvement from local financial institutions,” he said.

Workforce training and local manufacturing

The company estimates that more than 3,000 workers will be required across different stages of construction for upcoming projects, with at least 70% expected to be Uzbek nationals. ACWA Power has also supported vocational training through a renovated technical energy college in the Syrdarya region, where more than 370 graduates have completed specialized programs over the past three years.

At the manufacturing level, Malik said the company is working with a major Chinese wind turbine producer to localize production of key components such as towers and blades in Uzbekistan. The initiative is linked to a large wind development that will require about 300 turbines.

“Local manufacturing reduces costs, creates jobs and allows Uzbekistan to become part of the renewable supply chain, not just a project host,” Abid Malik stressed.

Watch the full interview on YouTube