Acwa Power-Sumitomo tie-up for Uzbekistan projects

Saudi energy company Acwa Power and Japan’s Sumitomo Corporation will jointly develop renewable energy projects worth $4.2 billion in Uzbekistan. 

The first set of projects include Sazagan 1 and 2 in Samarkand, each consisting of a 500 megawatt (MW) solar PV plant and 334MW battery energy storage systems (BESS).

These projects are slated to begin commercial operations between the second quarter of 2026 and the second quarter of 2027.

The second set of projects includes Kungrad 1, 2 and 3 wind projects in the Republic of Karakalpakstan in Uzbekistan, each featuring a 500MW wind power plant and 100MW BESS. Operations are expected to start by the second quarter of 2028.

Under a joint development agreement, Acwa Power will divest 49 percent of its stake in the Samarkand and Kungrad projects to Sumitomo.

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This collaboration follows the agreements made during the Saudi-Japan Vision 2030 Business Forum in May 2024.

The agreement aligns with Acwa Power’s growing Uzbekistan portfolio, which includes wind power plants in multiple regions and the country’s first 3,000 metric tonnes per year green hydrogen plant, said chief investment and development officer Thomas Brostrom.

In July, the Saudi-listed company divested a 35 percent stake in two subsidiaries to a state-backed power grid contractor in China for SAR596 million ($159 million).

Uzbekistan’s energy sector is attracting billions of dollars from the Gulf. The former Soviet republic wants to generate 35 percent of its electricity from renewable sources by 2030. 

Other GCC-based companies such as Masdar, Taqa and Mubadala have also committed to invest in Uzbekistan’s energy sector.