Energy Storage - The Times Of Central Asia

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Foreign Investment

Karakalpakstan Investment Push Brings $7.6 Billion in New Projects

Uzbekistan has announced 58 projects worth about $7.6 billion in Karakalpakstan, ranging from wind power and data centers to transport and healthcare. At a September 18 ceremony, 11 projects worth $592 million were commissioned or launched, while construction began on 47 more with a combined value of $7 billion. The projects are expected to create around 8,000 jobs, according to the presidential press service. Wind Power Leads Investment Push Among the largest projects is the 1.5-gigawatt Kungrad Wind Farm, being developed with Saudi Arabia’s ACWA Power. The Uzbek government values the project at $2.6 billion, although ACWA’s own project page puts its cost at just over $3 billion. The development includes extensive new transmission infrastructure and substation upgrades to connect the plant to Uzbekistan’s power grid. The wind farm will also include a 300-megawatt battery energy storage system. Once completed, it is expected to become one of the largest wind power projects in Central Asia. ACWA is already operating renewable energy facilities in Karakalpakstan. The Nukus-1 and Nukus-2 projects have a combined wind power capacity of 300 MW, along with 100 MW of battery storage. According to ACWA Central Asia President Abid Malik, the company’s planned, operational, and under-construction projects in Karakalpakstan represent about 2.3 GW of generation capacity and around $4 billion in investment. The projects are expected to generate about 8.77 billion kilowatt-hours of electricity annually, enough to cover the energy needs of approximately 2.4 million households, while saving around 2.1 billion cubic meters of natural gas. “Karakalpakstan is becoming one of the most vital investment destinations for ACWA in Uzbekistan,” Malik told The Times of Central Asia. He said construction of the Kungrad project could create around 4,000 jobs at its peak, while local content could reach approximately $750 million. ACWA is also supporting workforce development, with 78 students from Karakalpakstan currently studying at Shirin College to prepare for work in the country’s energy sector, Malik said. The ceremony also marked the launch of two wind power plants with a combined capacity of 300 MW and a 100 MW energy storage system in Karauzyak district. Health, Digital and Transport Projects Other projects launched during the visit included the $27 million Sheikh Khalifa Hospital in Nukus, built in cooperation with the United Arab Emirates. The 100-bed facility has created 80 jobs. A Karakalpak Scientific and Practical Medical Academy is also being established for medical training and research. The first phase of a modular computing center operated by the Chinese company Shanghai LinkWise Data Intelligence was launched in Takhiatash district. The presidential office valued the phase at $150 million. Chinese partners are also involved in projects worth a combined $2.281 billion to “produce digital currency” and establish artificial intelligence data centers in Kungrad and Takhiatash. The presidential statement did not identify the partners or explain what producing digital currency would entail. Transport infrastructure is another focus. A $20 million project by SAPSAN TRANS NO‘KIS has already delivered 25 buses and electric buses to Nukus, with another 75 electric buses...

Wind power

Masdar Launches Construction of $1.4 Billion Wind Farm in Southern Kazakhstan

Construction has begun on one of Kazakhstan’s largest renewable energy projects, a 1-gigawatt wind power plant in the southern Zhambyl Region, as the country moves to address energy shortages and expand green generation capacity. The $1.4 billion project is being developed by a consortium of Kazakhstani companies and investors from the United Arab Emirates. The shareholders include Abu Dhabi-based clean energy company Masdar with a 40% stake, W Solar with 40%, Kazakhstan’s Qazaq Green Power, part of the Samruk-Kazyna fund, with 18%, and the Kazakhstan Investment Development Fund with 2%. The official groundbreaking ceremony took place on June 29 in a teleconference format, with the launch signal given from Astana by Kazakhstan’s Vice Minister of Energy Sungat Yessimkhanov, Samruk-Kazyna CEO Nurlan Zhakupov, and Masdar CEO Mohamed Jameel Al Ramahi. Commercial operations are scheduled to begin in the third quarter of 2029. “Partnership with Masdar contributes to the development of renewable energy and Kazakhstan’s progress toward carbon neutrality,” Yessimkhanov said. “This project will strengthen regional energy security and bring advanced technologies into the renewable energy sector.” The project’s key technical feature is its integration of wind generation with battery energy storage. The facility will include an energy storage system with a capacity of 300 MW and storage volume of 600 MWh. Officials say the battery system will help address one of the main challenges of renewable energy by stabilizing electricity supply during fluctuating weather conditions and peak evening demand. The wind farm is expected to reduce carbon dioxide emissions by 2.5 million tons annually, supporting Kazakhstan’s national climate targets. Masdar has been expanding its presence across Central Asia. In 2024, Uzbekistan signed an agreement with the UAE company to build Central Asia’s first solar power plant with battery storage in the Bukhara region. In 2022, Masdar also reached an agreement with Turkmenistan to build the country’s first utility-scale solar plant, with a planned capacity of 100 MW. The company faces growing competition from Chinese firms in the region. In May, China Energy International Group launched construction of a 500-MW wind farm in central Kazakhstan. Kazakhstan aims to generate 15% of its electricity from renewable sources by 2030 as part of its broader strategy to reduce dependence on coal and improve long-term energy security.

Renewable energy

Central Asia’s Renewable Energy Boom Faces Growing Grid Challenges

Central Asia is rapidly expanding its renewable energy sector, with solar power emerging as one of the key drivers of the region’s energy transition. However, a new report by the Eurasian Development Bank (EDB) warns that accelerated deployment of renewable energy, without matching investment in grid infrastructure, reserve capacity, storage systems, and market reforms, could increase systemic risks and raise overall electricity costs. The warning comes as electricity demand across Central Asia continues to grow steadily. The region’s population now exceeds 80 million, and power consumption is rising by 3% to 6% annually. According to the EDB, electricity demand could increase by nearly 40% by 2030, reaching 370 billion kilowatt-hours annually, up from approximately 270 billion kilowatt-hours today. Governments across the region have announced ambitious renewable energy targets for the coming decade. Uzbekistan plans to install more than 25 gigawatts of renewable energy capacity by 2030, including solar and wind generation. Kazakhstan aims to commission 8.4 gigawatts of renewable energy by 2035, while Kyrgyzstan plans to add 3.65 gigawatts of solar capacity and 400 megawatts of wind power over the same period. Tajikistan is targeting 2 gigawatts of solar and wind generation by 2030, while Turkmenistan has announced plans for 300 megawatts of solar power capacity. Yet the region’s transition toward cleaner energy sources presents a growing challenge: electricity demand is increasing faster than power systems are adapting to accommodate large volumes of variable renewable generation. Solar energy production peaks during daylight hours, creating fluctuations that conventional power systems must manage. In the morning, before solar panels begin generating at full capacity, electricity demand is largely met by hydropower plants and thermal generation fueled by coal or natural gas. As solar output rises during the day, conventional plants must reduce generation or temporarily shut down. After sunset, when electricity consumption remains high but solar production falls to zero, conventional generators must rapidly increase output to stabilize the system. These abrupt shifts create operational challenges and increase costs for grid operators. According to the EDB’s report, Power Sector of Central Asia: Modernization and Energy Transition, the main obstacles to integrating renewable energy are technical and institutional, not simply financial. If sudden drops in solar or wind generation caused by weather changes are not immediately offset, power systems risk instability and, in extreme cases, blackouts. As renewable capacity expands, grids require more flexible generation, larger reserve margins, energy storage systems, and more sophisticated operational management tools. The report notes that renewable generation is being introduced faster than supporting infrastructure can be developed. In many countries, transmission networks were not designed to accommodate a high share of variable energy sources. Weather forecasting systems also remain insufficiently accurate to support reliable real-time balancing of renewable output. Market reforms have lagged as well. Capacity markets, reserve markets, and tariff systems in several Central Asian countries have yet to evolve in ways that encourage investment in flexible backup generation and storage technologies. As a result, the report argues, the real system-wide cost of renewable energy may...