Masdar and Uzbekistan Government sign PPA agreement to develop landmark 500MW wind project

Masdar, one of the world’s leading renewable energy companies, has signed an agreement with the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan and JSC National Electric Grid of Uzbekistan to design, finance, build and operate a 500-megawatt utility-scale wind farm project.

The Power Purchase Agreement (PPA) and Investment Agreement was signed during a virtual ceremony by Sardor Umurzakov, Deputy Prime Minister and Minister of Investments and Foreign Trade, Dadajon Isakulov, Chairman of JSC National Electric Grid, and Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar.

Under the agreements, Masdar will develop, build and operate the wind farm project, which will be located in the Zarafshon district of the Navoi Region. Commercial operation is expected to be achieved in 2024.

Speaking on the occasion of the signing, Deputy Prime Minister Umurzakov, said: “Masdar is our long-term trusted partner in expanding our renewable energy capacities and bringing their well-known international expertise to the country. This energy project with Masdar clearly illustrates the testimony to the strong commitment by the Government of Uzbekistan to increasing private sector participation in the country and support our ambitious clean energy goals.”

Masdar’s Al Ramahi said: “Masdar is proud to be collaborating with the Government of the Republic of Uzbekistan on our second utility-scale clean energy project in the country. The 500MW wind farm supports Uzbekistan’s long-term renewable energy ambitions and its strong commitment to not only modernise its power sector, but also invest in energy security. As a global leader in the development of utility-scale wind power, Masdar is committed to advancing clean-tech innovation both regionally and internationally by deploying the latest technologies at scale and enhancing their commercial viability.”

Today’s announcement comes after Masdar signed a Power Purchase Agreement (PPA) and Government Support Agreement (GSA) with the Government of the Republic of Uzbekistan in November 2019 to design, finance, build and operate the country’s first public-private partnership (PPP) solar power plant. Masdar was announced as the winning bidder for the solar project after tendering the lowest tariff of 2.679 US cents per kilowatt hour in the programme’s competitive auction to develop the 100MW utility-scale PV solar plant, which will be located in the Navoi region.

The signing ceremony highlights Uzbekistan’s goal of developing 5 gigawatts (GW) of renewable energy by 2030.

The power generating capacity of the renewable energy projects in which Masdar is a partner is more than 5GW, representing a combined investment of approximately US$14.3 billion and spanning more than 30 countries.