Acwa Power has signed a US$51 million loan package with the Asian Development Bank ( ADB ) to build the Nukus 2 Wind and Battery Energy Storage facility in Uzbekistan.

Located in the Qoraozak district of Karakalpakstan, the project is central Asia’s first wind power facility with a utility-scale battery energy storage system. It will be developed by Acwa Power Beruniy Wind FE LLC, which is fully owned by Saudi-based Acwa Power.

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

The project involves the construction and operation of a 200-megawatt wind power plant and a 100 megawatt-hour battery energy storage system, along with associated transmission infrastructure. It is expected to deliver 727,980 MWh of clean electricity annually.

“This project marks a significant step in Uzbekistan’s transition to a low-carbon energy future,” says ADB country director for Uzbekistan Kanokpan Lao-Araya. “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.”

As part of its support for Uzbekistan’s energy sector, ADB has provided a US$7.5 million credit guarantee backed by the Government of Uzbekistan. The guarantee was included in the bidding process to lower financial risk and increase competition, resulting in a lower tariff for the Nukus 2 project.

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.