A €232m ($260m) wind power project in western Uzbekistan is nearing completion, combining electricity generation with large-scale battery storage in what the Asian Development Bank (ADB) describes as a first for Central Asia.
At Nukus 2, 25 of the 26 wind turbines are already generating electricity, while the battery system is undergoing commissioning. The technology is designed to address a challenge increasingly facing electricity networks around the world, including in Europe: how to balance supply and demand as wind and solar power expand.
The facility, located in Karakalpakstan, an autonomous republic in northwestern Uzbekistan, is being developed by Saudi energy company ACWA. It combines a 200-megawatt wind farm with a battery system capable of storing 100 megawatt-hours of electricity.
According to project director Sardorbek Mahmudov, once fully operational, the facility could meet the electricity needs of more than 300,000 people.
An update published on 26 October put construction progress at 94.2%.
"The wind farm began generating electricity in August," Mahmudov said. He explained that commissioning the batteries involves additional safety and fire-protection requirements, with testing being carried out in stages.
From generation to storage
Wind and solar electricity generation fluctuates with weather conditions, while consumer demand follows a different pattern.
Battery storage offers one way to manage that difference. Electricity can be stored when it is available and released when needed, helping grid operators balance supply and demand and reducing the risk of interruptions.
At Nukus 2, the batteries are intended to provide short-term support when wind generation falls or demand increases.
Asked how long the system could supply electricity, Mahmudov estimated "three to four hours", depending on demand. The actual duration depends on how much power is drawn from the batteries.
The project also includes a new 44-kilometre transmission line and upgrades to existing electrical infrastructure, connecting the facility to Uzbekistan's national grid.
The growing importance of storage extends well beyond Central Asia.
According to the International Energy Agency (IEA), 108 gigawatts of new battery storage capacity was installed worldwide in 2025, an increase of 40% compared with the previous year.
Europe is experiencing a similar shift. Although total new battery installations across all categories declined slightly, additions of large-scale battery storage more than doubled in 2025, reaching approximately 4.6 gigawatts.
International investment and long-term financing
The project is being implemented through ACWA Beruniy Wind, a local subsidiary of the Saudi developer.
In September 2025, ADB and a fund it administers signed a loan package worth approximately €46mn ($51mn).
Other lenders include the Asian Infrastructure Investment Bank (AIIB), Dutch development bank FMO, Standard Chartered and Saudi EXIM. AIIB has separately approved approximately €67mn ($75mn) in financing for the project.
ADB also provided a government-backed credit guarantee intended to reduce financial risks and encourage competition during the bidding process.
The investment operates under a 25-year power purchase agreement signed in March 2024 following a competitive tender. Under the agreement, Uzbekistan's national grid operator will purchase electricity generated by the wind farm.
The long-term arrangement provides a commercial framework for the project, combining private investment with an agreed buyer for its electricity.
Abdulatif Matkarimov, an ADB portfolio manager, said the bank had been supporting Uzbekistan's renewable energy development since an earlier project in Navoi.
"In total, there are around ten projects in this sector," he said, referring to wind and solar generation.
Local employment and community impact
Construction has also created employment opportunities in Karakalpakstan.
According to Mahmudov, between 750 and 800 people worked on the project during construction, including more than 400 local workers and specialists.
"Local specialists are now taking on management roles in projects of this scale," he said.
Tarana Jafarova, the project's social manager, said recruitment from nearby communities was intended to support local incomes and livelihoods. She also described procedures for addressing complaints and compensating people affected by construction.
Environmental assessments have identified potential impacts on land use and wildlife, requiring mitigation and monitoring measures.
Once fully operational, the wind farm is expected to generate nearly 728,000 megawatt-hours of electricity annually, according to ADB.
The developer aims to complete commissioning of the battery system by the end of November 2026, bringing the entire facility into full operation.