The Asian Development Bank (ADB) and ACWA Power have signed a $51 million loan package to support the development of the Nukus 2 wind and battery energy storage system (BESS) project in Uzbekistan’s Qoraozak district of the Republic of Karakalpakstan. The project will be implemented by ACWA Power Beruniy Wind FE LLC which is owned by ACWA Power. The project involves the construction and operation of a 200 MW wind project alongside a 100 MWh BESS project.
The financing package includes $25.4 million from ADB’s ordinary capital resources and $25.4 million from the Leading Asia’s Private Infrastructure Fund 2, administered by ADB. Additionally, parallel financing is being provided by the Asian Infrastructure Investment Bank (AIIB), Dutch Entrepreneurial Development Bank (FMO), Standard Chartered Bank, and Saudi EXIM. Once operational, it is expected to supply 727,980 MWh of clean electricity annually, and offset 406,170 tonnes of carbon emissions annually.
The initiative is aligned with Uzbekistan’s Strategy 2030, which targets the addition of 25 GW of renewable energy capacity and a 35 per cent reduction in greenhouse gas emissions per unit of GDP by 2030. It also contributes to the country’s goal of achieving 54 per cent renewable energy in its electricity mix by the same year.
