Each week, Power Technology’s writers select a deal that illustrates the themes driving change in our sector. The deal may not always be the largest in value or the highest profile, but it will tell us where the industry is focusing its efforts, and why. This thematic deal coverage is drawn from GlobalData’s Intelligence Centre, which collates information from across the sector.
The deal
Acwa Power has signed a Roadmap Agreement with Kazakhstan’s Government to build 1GW of wind power generation and battery storage in the country. The self-funded investment, expected to total $1.5bn (SR5.63bn), fund completion of the site by 2027.
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The parties
Saudi power generator Acwa Power, formerly known as International Company for Water and Power Projects, is a global investor and developer of both traditional and renewable power sources.
The company agreed the road map with the Kazakhstan Energy Ministry and the country’s sovereign wealth fund, Samruk-Kazyna, which already owns a majority of Kazakhstan’s established power infrastructure. This includes 90% of the state oil and gas company KazMunayGas and 90% of the Kazakhstan Electricity Grid Operating Company.
The implications
It is the first entry for Acwa into the Kazakh market, in a region of the world where it is currently expanding its portfolio. The company is already in the planning stages of a trio of battery storage projects in neighbouring Uzbekistan.
Samruk-Kazyna will expand its energy dominance in the country while also aiding the government’s aims to decarbonise power generation. Considering it is already short of its 2030 renewables targets, this deal will bring it closer to the energy ministry’s revised outlook.
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By GlobalDataCurrently, only 3.5% of Kazakhstan’s energy generation comes from onshore wind. In 2022, Kazakhstan generated 24.3GW of energy, 850MW of which came from wind. As such, this project would more than double the country’s wind output and take its share of the power generation up to 7.3%.
