ACWA Power signs historic power purchase contract in Uzbekistan
(MENAFN) ACWA Power, a prominent Saudi Arabian company, has recently inked a significant energy purchase agreement under Uzbekistan's public-private partnership framework with the national electrical grid. This agreement marks a pivotal step forward in Uzbekistan's renewable energy landscape, forming part of the "Nokos 2" wind energy and battery energy storage project with a substantial capacity of 200 megawatts.
The announcement, made by ACWA Power to the Saudi market exchange "Tadawul" on Sunday, underscores the company's commitment to advancing renewable energy initiatives globally. The contract, valued at approximately 985.13 million riyals (USD262.7 million), encompasses the full spectrum of project lifecycle activities, including construction, ownership, operation, and eventual transfer at the conclusion of the 25-year power purchase agreement term.
While the financial implications of the project's operation are expected to become apparent post the first half of 2026, ACWA Power anticipates potential adjustments in the total investment value as the project progresses through the development phase. The company's forward-looking approach underscores its dedication to delivering sustainable and economically viable energy solutions, tailored to meet the evolving needs of diverse markets.
ACWA Power's robust financial performance, characterized by a 7.9 percent increase in profits last year, attests to its resilience and adaptability in navigating dynamic market conditions. With revenues totaling approximately 6.1 billion riyals in 2023, reflecting a noteworthy annual growth of 15.5 percent, the company's success is attributed to the strategic alignment of existing projects, enhanced operational efficiency, and robust management of development and construction activities.
The landmark agreement in Uzbekistan represents a strategic milestone for ACWA Power, reinforcing its position as a leading player in the global renewable energy arena. By leveraging its expertise and innovative solutions, ACWA Power is poised to drive sustainable development and contribute to the transition towards a greener and more resilient energy landscape, both regionally and internationally.
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