President Shavkat Mirziyoyev signed decrees paving the way for two wind power plant projects in Samarkand and Jizzakh provinces.
The deal, marking a crucial step in Uzbekistan's renewable energy ambitions, was inked with Universal Energy, a prominent player in the energy sector. The investment agreements were sealed on January 25, coinciding with the Uzbek leader's visit to China.
National Electric Grids had previously secured agreements with Universal Energy for the purchase of electricity over a 25-year period, dating back to October 2023.
Each wind farm will have a capacity of 250 MW, alongside the requisite infrastructure including power transmission lines. The venture is set to draw $250mn in investments, signifying a substantial commitment towards bolstering the country's renewable energy portfolio.
Universal Energy's subsidiaries, Peak Wind Alpha and Peak Wind Beta, will spearhead the execution of the projects as appointed contractors. To underscore their commitment to project integrity and success, the subsidiaries have furnished guarantees from a foreign bank amounting to $18mn.
As part of the contractual arrangements, purchases of electricity and construction-related endeavors will be remunerated in UZS, adhering to a fixed tariff denominated in foreign currency. Furthermore, project entities have been granted permission to operate bank accounts in foreign financial institutions to facilitate foreign exchange transactions.
This announcement follows Universal Energy's prior involvement in the tender for a wind farm project in the Beruni district of Karakalpakstan in 2023, where Saudi Arabian firm ACWA Power clinched the winning bid. Moreover, recent reports indicate a burgeoning interest in Uzbekistan's renewable energy sector, with Chinese company Goldwind poised to establish local production facilities for wind turbine components.
