ACWA Power announced its intention to sign the main clauses agreement, today, Wednesday, with the Ministry of Energy and the Ministry of Investment and Foreign Trade of the State of Uzbekistan for a wind power project with a production capacity of 1,500 megawatts in Karakalpakstan, Uzbekistan.
The company said in a statement to the Saudi market (Tadawul), that the value of the contract is estimated at about $2.4 billion, and it is expected that the financial closure of the project will be completed at the end of 2023 and be fully operational by the first quarter of 2026.
The Pakistan Caracal Wind Project will occupy one site, northwest of Uzbekistan, to be the largest project of its kind in the onshore wind energy sector in the region and the world.
The project will contribute by 19% to achieving the comprehensive goals pursued by the Uzbek government in the renewable energy sector.
Furthermore, the plant is expected to meet the energy needs of 1.65 million housing units, while reducing around 2.4 million tons of carbon emissions annually.
The company explained that the contract term is 25 years from the date of commercial operation, and the financial impact is expected to appear in the fourth quarter of 2023.
