Saudi Arabia’s renewable major ACWA Power has signed a letter of intent with China-based Asian Infrastructure Investment Bank (AIIB) to fund wind projects in Uzbekistan.

The agreement includes a four-year bridge loan of $150 million to support the development of three wind projects, each with a capacity of 500 megawatts (MW), the Saudi-listed company said in a statement.

The funding arrangement is backed by a corporate guarantee from ACWA Power, the statement added.

Uzbekistan aims to generate 40% of its electricity from renewable energy sources by 2030, aiming for 27 gigawatts (GW) of renewable energy. 

Currently, Uzbekistan is ACWA Power’s second-largest market in terms of investment volume. Its portfolio includes 11.6 GW of power, including 10.1 GW of renewable energy, in addition to the nation’s first green hydrogen project, which has a capacity of 3,000 tons per year.

Last month, ACWA Power and Japan’s Sumitomo Corporation announced joint development of several renewable energy and storage projects worth $4.2 billion in Uzbekistan.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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