ACWA Power, Silk Road Fund now co-investor for CCGT facility in Uzbekistan

The project is expected to be operational by early 2024.

Saudi Arabi-based ACWA Power and China’s Silk Road Fund entered a share purchase agreement for the development of the 1.5 gigawatts Sirdarya combined cycle gas turbine (CCGT) in Uzbekistan worth $1b which is expected to start operation in early 2024.

In a statement, ACWA Power said it will now hold a 51% stake in the facility, whilst the Silk Road Fund will own 49%. The agreement is expected to close by the fourth quarter of 2022.

“Under our successful public-private partnership model, the support of global investors like Silk Road Fund is critical in ensuring the development of advanced energy infrastructure that benefits both nations and communities, and enables robust socio-economic progress,” said ACWA Power CEO and Vice Chairman Paddy Padmanathan.

READ MORE: Saudi Arabia’s ACWA Power expands in Uzbekistan

The Sirdarya facility will account for 8% of the country’s total power capacity and will meet 15% of the electricity demand, providing cost-effective and energy-efficient power solutions, ACWA Power said.

It will also avoid two million tonnes of carbon emissions annually.

The JSC National Grid will be its sole off-taker for 25 years, the company said.