Korea Western Power becomes first state power firm to enter Central Asian renewable energy market

Korea Western Power has teamed up with global energy company ACWA Power to enter the Central Asian renewable energy market — a first for a South Korean state-owned power company.

Korea Western Power said President Lee Jeong-bok signed an MOU with Saudi Arabian energy company ACWA Power on Tuesday (local time) in Tashkent, Uzbekistan, to expand renewable energy projects.

The agreement aims to jointly identify large-scale renewable energy project opportunities in Central Asia, with a focus on Uzbekistan, and to lay the groundwork for cooperation. The two companies will combine their respective project development experience and capabilities to jointly pursue large-scale renewable energy platform projects in Uzbekistan. It marks the first time a South Korean state-owned power company has entered the Central Asian renewable energy sector.

Uzbekistan is pursuing power infrastructure expansion and an energy transition to meet rising electricity demand driven by economic growth and industrialization. The country is attracting private investment and foreign capital to diversify its power generation mix — currently dominated by natural gas — toward solar and wind energy, making it a competitive arena for renewable energy powerhouses including Saudi Arabia, Japan and China.

Uzbekistan is considered to have strong solar power potential thanks to its abundant sunshine. The government is pushing large-scale solar and wind projects under a target to raise the share of renewable energy in its power mix to 40 percent by 2030. Investment in flexible resources such as battery energy storage systems is also growing to ensure grid stability as renewable capacity expands.

Korea Western Power has been building ties with local government and businesses in Uzbekistan, including hosting the Korea-Uzbekistan Energy Value Network Forum there in June. Building on the MOU, the company plans to strengthen its foothold in the renewable energy market by working with ACWA Power, which has been developing large-scale power projects in Uzbekistan.

ACWA Power, founded in 2004, is a Saudi Arabian energy company that develops, invests in and operates power generation, renewable energy and water desalination projects. With Saudi Arabia's Public Investment Fund as its largest shareholder, the company operates, constructs or develops 111 projects totaling 98 GW of power capacity across 16 countries in the Middle East, Africa, Central Asia and Southeast Asia.

ACWA Power leads Uzbekistan's renewable energy market through large-scale solar, wind and energy storage projects. It is developing a total of 11.5 GW of power projects in the country, including the Tashkent Riverside project — a 200 MW solar plant paired with a 334 MW, 500 MWh battery energy storage system.

Korea Western Power has secured four power projects in the Middle East and is currently building and operating 3.5 GW of renewable energy capacity and 877 MW of combined-cycle gas power. The company plans to leverage its Middle East project development experience alongside ACWA Power's local capabilities to identify new business opportunities in Uzbekistan and across Central Asia.

Korea Western Power also plans to use the partnership as a springboard to expand its renewable energy business in Uzbekistan and help South Korean small and medium-sized enterprises in the power and energy sector enter the Central Asian market. The company intends to link domestic firms' equipment and technology to projects from the development stage onward, opening up overseas sales channels and creating opportunities for joint market entry.

"Our cooperation with ACWA Power will serve as a bridgehead for expanding our business into the Central Asian renewable energy market, including Uzbekistan, following our work in the Middle East," Lee said. "We will seek new growth opportunities based on the project experience we have built in the Middle East and our partnerships with world-class companies."