China Southern Power Grid to Become First Co-Investor in ACWA Power's Central Asia Project

Saudi-listed ACWA Power have announced completion of a Sale and Purchase Agreement(s) to sell 35% of its shareholding in ACWA Power Bash Wind Project Holding Company Limited and ACWA Power Uzbekistan Wind Project Holding Company limited to China Southern Power Grid International (HK) Co. Ltd (CSGIHK), the global investment and development arm of China Southern Power Grid (CSG).

Following the successful completion of the conditions precedent, a closing ceremony was held in Tashkent to mark the transaction’s completion. The ceremony was attended by Jurabek Mirzamakhmudov, Minister of Energy of Uzbekistan; Umid Mamadaminov, Deputy Minister of Energy of Uzbekistan; Hamud Turki Almutairi, Deputy Saudi Ambassador to Uzbekistan; Abdullajon Otaboev, Deputy Director of Energy Market Development and Regulatory Agency; Marco Arcelli, Chief Executive Officer of ACWA Power; Tang Yifeng, Vice President of CSG.

The transaction represents the first co-investment transaction between ACWA Power and China Southern Power Grid, for a large-scale renewable energy project in Central Asia.

This milestone follows framework agreements signed in December 2022 between ACWA Power and Chinese companies, that lay the ground for financing, investment and construction of ACWA Power’s global clean and renewable energy projects in Saudi Arabia and Belt and Road Initiative countries.

Marco Arcelli, Chief Executive Officer of ACWA Power, expressed his enthusiasm about the collaboration with China Southern Power Grid International, emphasising the importance of international cooperation in delivering sustainable solutions.

"Through strategic collaboration with China Southern Power Grid International, we are proud to announce a significant milestone in our journey towards sustainable energy solutions. The agreement in relation to our Bash and Dzhankeldy wind projects in Uzbekistan not only enhances ACWA Power's global presence but also strengthens ties between two industry leaders from different regions. This historic partnership underlines our commitment to driving innovation and progress in the renewable energy sector," he added.

Commenting on the announcement, TANG Yifeng, Vice President of China Southern Power Grid Co., Ltd (CSG) said: “By leveraging synergies, we can strengthen our strategic partnership and work towards developing a serial of benchmark projects and contribute to the implementation of the Uzbekistan-2030 Strategy.”

The ACWA Power Bash Wind Project Holding Company Limited and ACWA Power Uzbekistan Wind Project Holding Company Limited holds 100% stake in ACWA Power Bash Wind LLC “Bash” and ACWA Power Dzhankeldy LLC “Dzhankeldy” respectively, representing a combined 1GW of capacity with over USD 1.3 billion investment cost.

Upon completion, the Bash and Dzhankeldy wind power plants are set to become some of Central Asia’s largest renewable energy projects. Uzbekistan is ACWA Power's second-largest market in terms of investment cost, underscoring the company's long-standing commitment to the country.