On December 23, 2022, ACWA Power Company and the National Electric Grid of Uzbekistan (NEGU) agreed to a $2.40 billion power purchase agreement (PPA). The Tadawul-listed firm purchased three wind power special purpose vehicles (SPVs) to establish a 1.50 gigawatt (GW) wind farm in Kungrad, according to a bourse filing.
Formerly known as the Karakalpakstan Wind IPP, the Kungrad facility will be the largest single-site wind farm in Central Asia and one of the biggest worldwide. Upon implementation, the new wind farm is expected to offset 2.40 million tonnes of carbon emissions annually and power 1.65 million households.
The agreement covers the development, construction, and operation of the project and holds a 25-year duration period once the construction is completed. Meanwhile, the deal consists of three project companies at the site each developing a 500-megawatt (MW) wind power plant with three separate PPAs.
The contracted revenues are projected to reflect positively on ACWA Power’s income statements once the scheme achieves the commercial operating date (PCOD) in the third quarter (Q3) of 2027. Last September, the Saudi firm sold a $130 million stake in the 1,500 (MW) Sirdarya combined cycle gas turbine (CCGT) plant in Uzbekistan to China’s Silk Road Fund.
ACWA Power reported net earnings after tax and zakat of SAR 883.42 million in the first nine months (9M) of 2022, an increase of 110.37% from SAR 419.94 million the previous year.
