ADB, ACWA Power ink $51m loan for wind plus battery project in Uzbekistan

This will support the country’s 2030 renewable energy goal.

The Asian Development Bank (ADB) and ACWA Power Company (ACWA Power) have signed a $51m loan package to build the Nukus 2 Wind and Battery Energy Storage facility in Uzbekistan’s Qoraozak district in the Republic of Karakalpakstan.

In a statement, ADB said the project will be implemented by ACWA Power Beruniy Wind FE LLC, which is fully owned by ACWA Power. This will be Central Asia’s first wind power facility with a utility-scale battery energy storage system.

The financing package includes $25.4m from ADB’s ordinary capital resources and $25.4m from the Leading Asia’s Private Infrastructure Fund 2, administered by ADB. The Asian Infrastructure Investment Bank, Dutch Entrepreneurial Development Bank (FMO), Standard Chartered Bank, and Saudi EXIM are parallel lenders.

The project will feature a 200-megawatt wind power plant and a 100-megawatt-hour (MWh) battery energy storage system. It is expected to deliver 727,980 MWh of clean electricity annually, and reduce 406,170 tonnes of carbon dioxide equivalent emissions per year.

“By combining wind energy with a battery energy storage system, the project will enhance grid stability, improve energy reliability, and support the country’s goal of achieving 54% renewable energy in its electricity mix by 2030,” said ADB Country Director for Uzbekistan Kanokpan Lao-Araya.

The project builds on ADB’s ongoing support for Uzbekistan’s energy sector reforms and is aligned with Uzbekistan’s Strategy 2030, which targets the addition of 25 gigawatts of renewable energy capacity and a 35% reduction in greenhouse gas emissions per unit of GDP by 2030.