Uzbekistan will become the world's most competitive producer of green energy, stated at the Tashkent International Investment Forum the founder and CEO of the Saudi ACWA Power, Mohammad Abunayyan Wednesday.

He highly praised Uzbekistan’s energy potential and the quality of the country’s reform program.

“When I first came to Uzbekistan in 2019, my perception of the country was extremely negative. And it was a real discovery for me how completely different this beautiful country and its outstanding leadership turned out to be from what I expected,” Abunayan admitted.

He noted that the only international visit of the Saudi Arabian government during the COVID-19 pandemic was a trip to Uzbekistan in January 2021. Then a 80-man strong delegation landed in Bukhara.

“The Minister of Investment was shocked. He recalled the visit in 2016, and what he saw in 2021 seemed incredible to him. He was inspired, encouraged and impressed by the great leader, His Excellency the President,” said the head of ACWA Power.

According to Abunayyan, when the company first considered a wind farm project in Karakalpakstan, there were doubts due to political and social factors, as well as the legacy of the past. But after visiting the site, their opinion changed. “We were pleasantly surprised and inspired. When we came back, we told the government: we want to invest more… You may find it hard to believe, but the wind resources of this region are unique not only for Uzbekistan, but also on a global scale. This is a truly gifted region,” he said.

In his opinion, Uzbekistan will become the most competitive producer of green energy in the world.

“Believe me, energy here will be cheaper than in China. The wind here really blows constantly – even more than we expected. We conducted 12-month measurements, commenced the Nukus-1 project. And I can say that the wind was stronger than we expected. Now we are implementing Nukus-2, the project in Kungrad and others,” the company chief said.

He added that the total amount of ACWA Power investments in Uzbekistan exceeds $5 billion, 7.2 GW of capacity has been contracted, and another 2 GW are at the final stage. In October, it was reported that the company would build a 5 GW wind farm with a capacity in Kungrad district of Karakalpakstan. The project cost is estimated at $6.2 billion.

The Green Cluster in the Kungrad district should become a key element of the region's development strategy until 2035. 90% of the energy in this industrial zone will come from renewable sources. This should create conditions for the transfer of energy-intensive industries. Since May 1, a decree has also been in effect, which provides a 15% discount on electricity compared to the rest of the country.

In addition, ACWA Power announced the launch of a new educational project.

“Today, in front of Mrs. [Presidential Aide Saida] Mirziyoyeva, I officially declare: we will accept 100 young men and women from the region for training. Already this semester, in a month and a half. We will send them to Shirin, train them and return them back home [to Karakalpakstan],” said the Chairman of the Board of ACWA Power.

With the support of the company, an energy college was opened in the city of Shirin in the Syrdarya region, where more than 500 students are studying. Some of them have already completed the course and are working on ACWA Power projects, Sumendra Raut, the company’s financial director for Uzbekistan, said earlier at the forum.

ACWA Power is one of the largest energy companies in Saudi Arabia, which specializes in projects in the field of renewable energy, water supply and electricity storage. It operates in more than 10 countries, including Uzbekistan, where it is one of the largest foreign investors in the energy sector.

Thus, in Karakalpakstan, with its participation, two wind power plants with a capacity of 1.5 GW and 100 MW are now being erected. The cost of one plant will be $ 1.65 billion.

The company is also implementing a 1.5 GW thermal power plant project in the Syrdarya province.

In the Peshkun and Gijduvan districts of the Bukhara province, work is underway to erect 500 MW wind farms. The phase I of both projects should be operational by the end of this year. About $741 million were drawn for the implementation.

The company is working on photovoltaic power plants in the Tashkent and Samarkand provinces. In addition, it is investing in a "green" hydrogen plant in Chirchik and attracted PowerChina to its construction. The construction was planned to be completed by December of this year. The costs of the project are preliminarily estimated at $88 million.

New initiatives include the wind power plant projects in the Bukhara province and Karakalpakstan, where the project will cost $262 million. In addition, two PV plants with a total capacity of 1 GW are planned to be launched in the Samarkand province, and a 334 MW battery energy storage system is planned to be created in the Tashkent province.

In October, the International Finance Corporation provided a $240 million bridge loan for ACWA Power's projects in Uzbekistan, including the construction of a 1 GW solar power plant, a 668 MW energy storage system, and the construction of 500 km of high-voltage transmission lines.