ACWA Power's 1.5GW Kungrad Wind Project in Uzbekistan Enters Construction Phase

en.Wedoany.com Reported - On September 18, the Presidential Administration of Uzbekistan announced that the 1.5GW wind power project developed by ACWA Power in the Kungrad district of the Republic of Karakalpakstan, along with its supporting grid connection works, has entered the substantive construction phase. The project involves a total investment of approximately USD 2.6 billion, with construction content including the wind farm, high-voltage transmission network, and substation facilities. Uzbek President Shavkat Mirziyoyev announced the project's entry into the construction phase at the launch ceremony for new projects in Karakalpakstan.

The Kungrad project consists of three adjacent wind farms—Kungrad Wind 1, Kungrad Wind 2, and Kungrad Wind 3—each with an installed capacity of 500MW, bringing the total installed capacity to 1.5GW. According to ACWA Power project materials, the project is also equipped with a 300MW battery energy storage system, implemented under a build-own-operate-transfer model, and has signed a 25-year power purchase agreement with the National Electric Grid of Uzbekistan.

The supporting grid works are considerable in scale. According to the Presidential Administration of Uzbekistan, the project will construct approximately 1,500 kilometers of high-voltage transmission lines, build three new 500kV substations, and modernize another two substations. The latest project documents from the Asian Development Bank show that the Kungrad Clean Energy Gateway Project includes approximately 845 kilometers of 500kV transmission lines, equivalent to about 1,327 kilometers when calculated by double-circuit length, and is equipped with a 300MW/550MWh energy storage system. Once completed, it is expected to deliver approximately 5.8TWh of renewable electricity to the national grid annually.

Project financing has entered the stage of participation by multilateral financial institutions. The Asian Development Bank is evaluating a USD 250 million loan, a USD 115 million guarantee, and a commercial loan arrangement of up to USD 400 million, with funds focused on the transmission backbone project connecting the renewable energy base in Karakalpakstan to the National Electric Grid of Uzbekistan. The Asian Infrastructure Investment Bank has previously approved USD 150 million in non-sovereign financing to support the construction of the Kungrad wind power and energy storage system.

ACWA Power previously signed a joint development agreement with Sumitomo Corporation of Japan for the Kungrad Wind 1, 2, and 3 projects and other new energy assets in Uzbekistan. The three Kungrad wind farms were originally planned to each be equipped with 500MW of wind power and a 100MW-class energy storage system, with commercial operation targeted for the second quarter of 2028.