A groundbreaking energy venture is taking shape in Uzbekistan’s Karakalpakstan region, where international investors are pioneering Central Asia’s first utility-scale wind power facility equipped with cutting-edge battery storage technology. The ambitious Nukus-2 project represents a significant leap forward in the region’s energy infrastructure, promising to reshape both the power landscape and business environment for international companies.
The Asian Development Bank and Saudi Arabia’s ACWA Power have formalized their partnership with a $51 million financing package signed in Tashkent, marking a decisive moment for renewable energy development in the region. The project will be executed through ACWA Power Beruniy Wind, a subsidiary specifically established for this venture, demonstrating the Saudi company’s long-term commitment to the Uzbek market.
Technical specifications and capacity
The Nukus-2 facility will feature a robust 200 MW wind power station paired with a 100 MW-hour battery storage system, along with comprehensive transmission infrastructure. This combination positions the project to deliver 727,900 MWh of clean energy annually while reducing CO2 emissions by 406,100 tons per year. The construction and operational phases are expected to generate over 200 employment opportunities, injecting valuable expertise and resources into the local economy.
The financing structure reflects strong international confidence in Uzbekistan’s energy sector, with the $51 million ADB package comprising $25.4 million from conventional capital resources and an equal amount from the Leading Asia Private Infrastructure Fund 2. Additional backing comes from a consortium of prominent financial institutions including the Asian Infrastructure Investment Bank, the Dutch Development Bank FMO, Standard Chartered Bank, and Saudi EXIM Bank.
Strategic location advantages
Karakalpakstan’s selection for this pioneering project stems from the region’s exceptional wind energy potential, with optimal speeds for industrial wind generation making it a strategic territory for green energy development. The groundwork for this initiative was established in March 2024 through a public-private partnership agreement between the Uzbek government and ACWA Power, supported by the European Bank for Reconstruction and Development, with an initial project valuation of $262.65 million.
This energy infrastructure development creates substantial opportunities for international companies in construction, interior and exterior manufacturing, and design sectors. Enhanced energy reliability and capacity directly support manufacturing operations, while the influx of international investment and expertise opens new partnerships and supply chain possibilities. The project’s focus on cutting-edge technology and sustainable development aligns with global trends toward environmentally responsible business practices, positioning Uzbekistan as an increasingly attractive destination for companies seeking stable energy infrastructure and progressive regulatory environments in Central Asia.
