Expansion of wind energy in Uzbekistan
Uzbekistan’s climate and geography mean that it has great potential for solar and wind energy. To meet the country’s growing energy needs and reduce its dependence on fossil fuels, the Uzbek government is planning to increase its renewable energy supply to 12 GW – i.e. 25% of its energy needs – by 2030.
DEG is putting its weight behind the expansion of green infrastructure in Uzbekistan, which aims to facilitate the sustainable development of the electricity sector in line with global climate protection targets. Expanding the infrastructure in this way will also stimulate economic development in the region.
DEG is arranging long-term financing of up to USD 65 million for ACWA Power Wind Karatau FE LLC to build and operate a 100 MW wind power plant. Of this investment amount, DEG is putting up to USD 25 million itself, with other financiers including EBRD and Proparco.
Once completed, the wind power plant in the Karakalpakstan region close to Nukus city will generate more than 300 GWh of electricity every year, which will be fed into the national grid over 25 years as part of a long-term supply agreement. This will provide more than 50,000 people with green electricity and avoid 200,000 tonnes of CO2 being produced every year.
As Ludger Roecken, Head of the Infrastructure & Energy Asia/Europe Department, explains: “By financing this project, we are teaming up with our longstanding customer ACWA Power for the third time in Uzbekistan. This allows us to help improve the supply of renewable energy and to play an active role in financing private-sector projects.”
DEG already committed in 2022 long-term financing for two 500 MW wind farms in Uzbekistan. Construction works on the Bash Wind Power Plant and Dzhankeldy Wind Power Plant already started and are expected to be completed in 2025. This will allow the country to generate more than 3,000 GWh of green electricity again and, in turn, to reduce annual CO2 emissions by an additional 1,800,000 tonnes.
By financing this project, DEG is helping to expand the generation of renewable energy in emerging-market countries like Uzbekistan, which play an important role in reducing carbon emissions in keeping with the Paris Agreement and in making DEG’s portfolio climate-neutral by 2040.