Saudi-listed ACWA Power, the world’s largest private water desalination company and a leader in energy transition, has entered into a joint development agreement with Japan’s Sumitomo Corporation, a Fortune 500 trading and investment firm, to develop Uzbekistan's largest renewable energy generation and storage projects.

The projects, located in Samarkand and Karakalpakstan, are divided into two key initiatives. The first includes the Sazagan 1 and 2 projects in Samarkand, each consisting of a 500-MW solar photovoltaic (PV) plant and a 334-MW battery energy storage system (BESS). These projects are expected to become operational at some point between the second quarters of 2026 and 2027.

The second set of projects, located in Kungrad, Karakalpakstan, includes the Kungrad 1, 2, and 3 wind power plants, each with a capacity of 500 MW for wind energy and 100 MW for battery energy storage systems (BESS), with commissioning planned for 2Q28.

Combined, the Samarkand and Kungrad projects represent an investment of $4.2bn and will be the largest clean energy and storage initiatives in Uzbekistan. 

Under the agreement, ACWA Power will divest 49% of its stake in these projects to Sumitomo Corporation, enhancing collaboration between the two energy giants.

“This joint development agreement with Sumitomo Corporation showcases ACWA Power's commitment to supporting Uzbekistan's impressive and ambitious energy transition,” said Thomas Brostrom, chief investment officer of ACWA Power.

He added: “Integrating battery storage with our solar and wind projects in Samarkand and Kungrad enhances grid reliability and maximises renewable potential. These projects, alongside our growing portfolio in Uzbekistan, are helping the country become a regional leader in sustainable energy development.”

JP Tiwari, vice president and head of business development for Central Asia, Caucasus, and Turkey at ACWA Power, highlighted Uzbekistan's significance as a core market for the company. "Uzbekistan is ACWA Power's second-largest market in terms of investments, demonstrating our ongoing commitment to the country's energy transition. By leveraging our partnership with Sumitomo Corporation, we are further solidifying this commitment with the largest clean energy projects in the country."

Koichi Taniguchi, general manager of overseas energy solution SBU at Sumitomo Corporation, emphasised the importance of the collaboration: “This joint development of renewable projects in Uzbekistan aligns with our company’s mission to provide stable energy for the economic and industrial development of local communities. We aim to contribute to the sustainable growth of Uzbekistan through this partnership with ACWA Power."

The agreement builds on May's Saudi-Japan Vision 2030 Business Forum, which promoted collaboration between Saudi Arabia and Japan in renewable energy and water solutions. 

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