By: Energetica India

The Asian Development Bank (ADB) and ACWA Power Company have finalised a USD 51 million financing package for the Nukus 2 Wind and Battery Energy Storage facility in Uzbekistan’s Qoraozak district, Republic of Karakalpakstan. Implemented by ACWA Power Beruniy Wind FE LLC, the project marks Central Asia’s first wind power facility paired with a utility-scale battery energy storage system.

The 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 2, administered by ADB. Additional parallel lenders include the Asian Infrastructure Investment Bank (AIIB), Dutch Entrepreneurial Development Bank (FMO), Standard Chartered Bank, and Saudi EXIM.

The project entails constructing and operating a 200 MW wind power plant with a 100 MWh battery system and associated transmission infrastructure. It is expected to generate 727,980 MWh of clean electricity annually, cut 406,170 tons of CO₂-equivalent emissions per year, and create over 200 jobs during construction and operation.

ADB Country Director for Uzbekistan Kanokpan Lao-Araya highlighted the project’s significance, stating it will enhance grid stability, improve energy reliability, and support Uzbekistan’s target of achieving 54 percent renewable energy in its electricity mix by 2030.

To support financing, ADB provided a USD 7.5 million credit guarantee backed by the Government of Uzbekistan, which lowered financial risk and increased competition, resulting in a low tariff for the project.

Nukus 2 builds on ADB’s long-term support for Uzbekistan’s energy reforms and aligns with the country’s Strategy 2030, aiming to add 25 GW of renewable capacity and reduce greenhouse gas emissions per unit of GDP by 35 percent by 2030. The initiative also supports ADB’s priorities in climate resilience, gender equality, and private sector development.

This year marks 30 years of partnership between ADB and Uzbekistan, during which the bank has committed USD 14.3 billion in public sector loans, nonsovereign loans, grants, and technical assistance.