The Saudi Arabia-based energy giant Acwa Power is undertaking transformative investments in Uzbekistan, with total project capacities exceeding 5,000 MW. These initiatives mark not only a turning point for Uzbekistan but also signal the emergence of a new energy paradigm across Central Asia.
In an effort to accelerate its national energy transition, Uzbekistan is forging a historic partnership with Gulf capital. Acwa Power, a state-backed energy company from Saudi Arabia, is implementing a range of hybrid energy projects valued at several billion USD across various regions of the country. Implemented through the “Build–Own–Operate–Transfer” (BOOT) model, these projects are of strategic significance, not only in terms of energy production but also with regard to regional development and geopolitical orientation.[1]
Key projects currently under development in Tashkent, Bukhara, Karakalpakstan, Samarkand, and Sirdarya include the following:
Figure 1: Acwa Power’s Energy Investments in Uzbekistan
Beyond their technical features, these projects represent a deepening strategic alignment between Gulf countries and the broader Turkestan region. The scale of Acwa Power’s investments in Uzbekistan is widely interpreted as part of a long-term Gulf strategy to establish a sustained economic and political presence in Central Asia. Given China’s Belt and Road Initiative and Russia’s enduring historical influence in the region, the Gulf states’ expanding role in the energy sector of Turkestan holds strategic significance for both diversification and geopolitical leverage. Moreover, these investments are likely to serve as a model for neighboring countries such as Turkmenistan and Kazakhstan, potentially stimulating similar capital inflows from Gulf-based investors and redrawing the energy investment landscape of Central Asia along Arab-financed lines.
Acwa Power’s involvement in Uzbekistan is not merely a commercial endeavor; it reflects a broader pillar of Saudi Arabia’s foreign economic policy. This growing Gulf-Turkestan energy axis illustrates the construction of a new architecture of cross-regional cooperation. In this context, Uzbekistan is positioning itself not only as an investment destination but also as a regional pioneer in green energy and a strategic gateway for Gulf capital into Central Asia.
With an ambitious goal to significantly increase green energy production by 2030, Uzbekistan’s government sees these projects as more than just tools for carbon emission reduction. They are regarded as foundational elements of the country’s long-term vision for regional energy leadership.
Nonetheless, while Acwa Power’s investments offer substantial opportunities for economic development and energy transformation, potential downsides must also be acknowledged. Chief among these is the risk of overdependence on Gulf capital, which may increase external influence over Uzbekistan’s energy policy and constrain sovereign decision-making in strategic sectors. Therefore, it is essential for the Uzbek government to maintain vigilant oversight over all legal and operational aspects of these agreements to safeguard national interests.
In this regard, ensuring a balanced distribution of foreign investments across the country and prioritizing strategies that foster local development are critical foreign policy imperatives. These measures will not only help preserve national sovereignty but also contribute to Uzbekistan’s sustainable development agenda and its broader regional aspirations.
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