Uzbekistan has signed an agreement to build a 1,500 MW wind farm in its northwestern Republic of Karakalpakstan with Saudi Arabian company ACWA Power.

The wind farm is expected to be the largest in the Central Asia region after completion, and will cover the needs of approximately 4 million households and offset approximately 2.5 million tons of carbon dioxide per year, the country's energy ministry said in a statement.

Uzbekistan, which generates 85 percent of its electricity with thermal power plants, plans to reduce its dependency on natural gas and coal and develop its renewable energy sector.

"We are learning a lot from our Middle Eastern and especially Saudi partners in the transition to a low-carbon economy. The ACWA Power project will greatly contribute to this process. Our plan is to produce 25 percent of electricity from renewable energy sources by 2030," Uzbek Deputy Energy Minister Sherzod Khojaev said in the statement.

Chairman of ACWA Power Mohammad Abunayyan said the project will help Uzbekistan achieve its ambitious renewable energy goal.

Earlier this year, the Uzbek energy ministry and ACWA Power signed power purchase and investment agreements on two wind power projects, which will be built in the Bukhara and Navoi regions, with a combined power generation capacity of 1,000 MW.