ADB and ACWA Power to Finance Construction of “Nukus-2” Wind Power Plant in Karakalpakstan

Tashkent, Uzbekistan (UzDaily.com) — The Asian Development Bank (ADB) and ACWA Power have signed a US$51 million financing package for the “Nukus-2” project in the Karaozak District of Karakalpakstan.

The project involves constructing a 200 MW wind power plant and a 100 MWh energy storage system. Implementation will be carried out by ACWA Power Beruniy Wind, a wholly owned subsidiary of ACWA Power.

“Nukus-2” will be the first utility-scale wind energy facility in Central Asia equipped with an energy storage system. The project is expected to generate 727,980 MWh of clean electricity annually, reduce CO₂ emissions by 406,170 tons, and create over 200 jobs during construction and operation.

The financing includes US$25.4 million from ADB’s own capital resources and the same amount from the Leading Asia’s Private Infrastructure Fund 2. Parallel lenders include the Asian Infrastructure Investment Bank (AIIB), the Netherlands Development Finance Company (FMO), Standard Chartered Bank, and the Saudi Export-Import Bank.

Additionally, ADB provided a US$7.5 million credit guarantee to reduce risks, enhance competition in the tender, and secure a favorable tariff for the project.

According to Kanokpan Lao-Arai, Director of ADB’s Resident Mission in Uzbekistan, “Nukus-2” represents a significant step in the country’s transition to low-carbon energy, will increase the stability of the power system, and contribute to the goal of raising the share of renewable energy to 54% of the energy mix by 2030.

The project aligns with Uzbekistan’s 2030 strategy, which aims to develop up to 25 GW of renewable generation capacity and reduce the economy’s carbon footprint by 35% of GDP. It also meets ADB priorities on climate resilience, gender equality, and private sector support.

This year marks the 30th anniversary of ADB’s cooperation with Uzbekistan. Since the country joined the bank in 1995, financial and technical support has exceeded US$14.3 billion. Founded in 1966 and comprising 69 countries, ADB remains one of the leading multilateral development institutions, promoting sustainable and inclusive growth in the Asia-Pacific region.