The Asian Development Bank (ADB) and ACWA Power Company signed a $51 million loan package to build the Nukus 2 Wind and Battery Energy Storage facility in Uzbekistan's Qoraozak district, according to ADB's news release on Monday.
The project will be implemented by ACWA Power Beruniy Wind and will be Central Asia's first wind power facility with a utility-scale battery energy storage system.
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.
The project will build and operate a 200 megawatt (MW) wind power plant with a 100 megawatt-hour (MWh) battery energy storage system and supporting transmission lines.
It is expected to generate about 727,980 MWh of clean electricity annually, cut 406,170 tons of carbon emissions each year, and create over 200 jobs during construction and operation.
ADB Country Director for Uzbekistan Kanokpan Lao-Araya said the project is a significant step in Uzbekistan's transition to a low-carbon energy future and 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.
ADB issued a $7.5 million government-backed credit guarantee, included in the bidding to lower financial risk, boost competition, and secure a low tariff for the Nukus 2 project.
The project continues ADB's support for Uzbekistan's energy reforms and aligns with Strategy 2030, under which Uzbekistan plans to add 25 GW of renewable capacity and reduce GHG emissions per unit of GDP by 35% by 2030.
By Meryem Rana Soylu
Anadolu Agency
energy@aa.com.tr
