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The first wind power plant in Central Asia with an energy storage system will be built in Karakalpakstan.
The Asian Development Bank (ADB) and ACWA Power have signed a loan package worth USD 51 million for the construction of a wind power plant and an energy storage system based on batteries in the Qorao‘zak district. This will be the first utility-scale wind power plant in Central Asia equipped with an energy storage system.
Within the framework of the “Nukus-2” project in the Qorao‘zak district of Karakalpakstan, the Asian Development Bank and ACWA Power Company signed a USD 51 million loan package for the construction of a wind power plant and an energy storage system based on batteries, ADB’s press service informed Gazeta.
The project will be implemented by “ACWA Power Beruniy Wind” LLC JV, a company fully owned by ACWA Power. This project will be the first utility-scale wind energy facility in Central Asia to feature an energy storage system.
The financing package includes USD 25.4 million from ADB’s ordinary capital resources and USD 25.4 million from the Leading Asia’s Private Infrastructure Fund (LEAP), managed by ADB. The Asian Infrastructure Investment Bank (AIIB), the Dutch entrepreneurial development bank (FMO), Standard Chartered Bank, and Saudi EXIM are participating as parallel lenders.
The project encompasses the construction and operation of a 200 MW wind power plant, a 100 MWh battery-based energy storage system, and the associated transmission infrastructure. It is expected to generate 727,980 MWh of clean electricity annually, reduce CO2 emissions by 406,170 tons per year, and create over 200 jobs during construction and operation.
“This project marks an important step in Uzbekistan’s transition to a low-carbon energy future. By integrating wind power with an energy storage system, it will enhance grid stability, increase the reliability of energy supply, and support the government’s goal of reaching a 54% share of renewable energy in electricity generation by 2030,” said Kanokpan Lao-Araya, ADB Country Director for Uzbekistan.
As part of supporting Uzbekistan’s energy sector, ADB also provided a USD 7.5 million loan guarantee with the support of the government. The guarantee was introduced into the tender process to mitigate financial risks and strengthen competition, which is expected to lead to lower tariffs for the Nukus-2 project.
“The project is grounded in ADB’s consistent support for Uzbekistan’s energy sector reforms and aligns with Uzbekistan’s 2030 strategy, which envisions increasing renewable energy capacity by 25 GW and reducing greenhouse gas emissions per unit of GDP by 35% by 2030. It also supports ADB’s corporate priorities in climate resilience, gender equality, and private sector development,” the bank’s statement noted.
Since joining ADB in 1995, Uzbekistan has received a total of USD 14.3 billion in sovereign loans, non-sovereign loans, grants, and technical assistance.
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