ADB Backs Uzbekistan's Nukus 2 Wind Project

The Asian Development Bank (ADB) and ACWA Power Company have executed a USD 51 million loan agreement to construct the Nukus 2 Wind and Battery Energy Storage plant in Uzbekistan's Qoraozak district, Republic of Karakalpakstan.

The project, undertaken by ACWA Power Beruniy Wind FE LLC, is Central Asia's inaugural wind power plant with a utility-scale battery storage system.

The funding comprises USD 25.4 million from ADB's ordinary capital resources and USD 25.4 million from the Leading Asia's Private Infrastructure Fund 2, with supplementary finance provided by the Asian Infrastructure Investment Bank (AIIB), Dutch Entrepreneurial Development Bank (FMO), Standard Chartered Bank, and Saudi EXIM. The project involves a 200-megawatt wind farm and a 100-megawatt-hour battery energy storage facility, as well as transmission facilities.

Key highlights:

• ADB and ACWA Power secured USD 51M to build Central Asia’s first wind and battery storage plant in Uzbekistan’s Qoraozak district
• The 200 MW wind farm with 100 MWh battery storage will deliver nearly 728,000 MWh of clean energy annually and cut over 406,000 tons of CO2 emissions
• The project supports Uzbekistan’s Strategy 2030 goals, enhancing grid stability and renewable energy share to 54 percent by 2030 while creating more than 200 jobs

“This project is a major milestone for Uzbekistan to make a transition towards a low-carbon energy future. With the integration of wind power and battery storage, the project will improve the stability of the grid, strengthen energy reliability, and help the country achieve the goal of 54 percent renewables by 2030.” said Kanokpan Lao-Araya, ADB Country Director for Uzbekistan.

Projected to produce 727,980 MWh of renewable power every year, the project will save 406,170 tons of CO2 equivalent of carbon emissions annually and provide more than 200 employment opportunities during construction and operation.

The ADB also issued a USD 7.5 million credit guarantee supported by Uzbekistan's government, promoting competitive bidding and leading to the project's low tariff.

Also Read: ADB and AFD Boost Sustainable Project Funding in Asia

This project is in line with Uzbekistan's Strategy 2030 to increase the capacity of renewable energy by 25 gigawatts and reduce greenhouse gas emissions per GDP unit by 35 percent. It is also in line with ADB's focus on climate resilience, gender equality, and private sector development.

Uzbekistan has received USD 14.3 billion in loans, grants, and technical assistance since joining ADB in 1995, celebrating 30 years of partnership this year.