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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...

Renewable energy

Acwa and KOWEPO Explore Renewable Energy Projects in Uzbekistan

South Korea’s KOWEPO, which is wholly owned by state-controlled Korea Electric Power Corporation (KEPCO), is moving into Uzbekistan’s rapidly expanding green energy market alongside Saudi Arabia’s Acwa, one of the market’s largest players. No specific projects have been announced yet, but the companies will explore opportunities in renewable generation and energy storage while considering the possibility of attracting South Korean financing. The memorandum was signed in Tashkent on August 25. For KOWEPO, the agreement offers an opportunity to bring to Central Asia the experience it has gained through projects in the Middle East totaling 3.5 GW of renewable capacity and 877 MW of gas-fired generation. For Acwa, Uzbekistan has already become its second-largest market after Saudi Arabia. The company has operated there since 2019 and is developing 19 projects with a combined capacity of more than 10 GW and potential investment estimated at $15 billion. Abid Malik, Acwa’s president for Central Asia, said the companies would also seek to “facilitate engagement with Korean financial institutions” as they assess potential projects. Acwa’s portfolio in Uzbekistan includes solar and wind power, conventional generation, green hydrogen, and energy storage. Storage is becoming increasingly important as the share of solar and wind grows because utility-scale batteries can store surplus electricity and return it to the grid when renewable generation falls. Uzbekistan aims to expand renewable energy capacity to around 25 GW by 2030, with renewables targeted to account for 54% of electricity generation. The rapid construction of solar and wind farms comes as electricity demand rises and Uzbekistan seeks to modernize a power system that has historically relied heavily on gas-fired generation. Acwa has already secured contractual priority to develop up to 2 GWh of new battery energy storage capacity in the country. KOWEPO could therefore provide additional expertise and capital. Uzbekistan’s energy transition has already attracted major investors from Saudi Arabia, the United Arab Emirates, China, and elsewhere. For now, the agreement with KOWEPO remains a framework arrangement, with the capacity, cost, locations, and timelines of any joint projects yet to be announced. Its practical significance will become clearer if the companies move from exploring opportunities to concrete investment decisions.

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.

Wind power

AIIB Backs New Wind Power Project in Uzbekistan with $107 Million Loan

The Asian Infrastructure Investment Bank (AIIB) has signed a $107 million loan agreement with Saudi-based company ACWA Power to support the construction of the Bash 2 wind power plant in Uzbekistan. The project will be located in the Gijduvan district of the Bukhara region and is expected to have a capacity of 300 megawatts. Once completed, the facility will generate around 943 gigawatt-hours of electricity annually, enough to supply more than 336,000 households. It is also projected to reduce carbon dioxide emissions by approximately 475,000 tons per year. The Bash 2 project builds on the earlier Bash 1 wind development and forms part of a broader renewable energy cluster in the region. It aligns with Uzbekistan’s strategy to expand clean energy production and diversify its energy mix, with a national target of increasing the share of renewables to 40% by 2030. “AIIB’s investment in the Bash 2 wind power plant reflects our commitment to supporting Uzbekistan’s transition toward a more sustainable and diversified energy system,” said Konstantin Limitovskiy, Chief Investment Officer at AIIB. He noted that cooperation with private developers such as ACWA Power helps mobilize capital and strengthen energy security while delivering long-term environmental benefits. ACWA Power also emphasized the significance of the project within its growing partnership with Uzbekistan. “Bash 2 represents a meaningful step forward in ACWA’s expanding partnership with Uzbekistan and the delivery of its energy transition ambitions,” said Abdulhameed AlMuhaidib, the company’s Chief Financial Officer. He added that the project demonstrates the effectiveness of public-private partnerships in delivering large-scale clean energy solutions. The investment is supported by a long-term power purchase agreement with the National Electric Grid of Uzbekistan and is co-financed by the Asian Development Bank and Standard Chartered Bank. This financing structure highlights continued investor confidence in Uzbekistan’s renewable energy sector. Since 2019, AIIB and ACWA Power have jointly invested approximately $440 million in Uzbekistan’s energy sector, covering both renewable and conventional power generation projects. The latest agreement comes amid broader efforts by Uzbekistan to strengthen energy cooperation with international partners. As previously reported by The Times of Central Asia, the government has expanded collaboration with Saudi companies, including ACWA Power, through a series of joint projects. During a high-level meeting with Saudi investors, four wind power plants with a combined capacity of 752 megawatts were connected to the national grid, while construction began on additional projects totaling 2.3 gigawatts. At the same time, infrastructure development has continued, including work on a 1,790-kilometer high-voltage transmission line designed to improve electricity distribution across several regions of the country.

Renewable energy

TotalEnergies Launches Wind Farm Project in Southern Kazakhstan

French energy company TotalEnergies has launched construction of the Mirny wind farm, a 1-gigawatt renewable energy project in Kazakhstan’s Moyinkum District in the Zhambyl Region. Once completed, the facility is expected to become one of the largest wind power installations in Central Asia. The project provides for the installation of around 150 wind turbines supplied by Envision and SANY. It will also include a 600-megawatt-hour energy storage system developed by the French battery manufacturer Saft, designed to improve grid stability and optimize power distribution. Total investment in the project is estimated at about $1.1 billion. The wind farm is scheduled to be commissioned in the fourth quarter of 2028. Annual electricity generation is projected to reach up to 4 billion kilowatt-hours, which could reduce carbon dioxide emissions by at least 3.2 million tons per year. Kazakhstan’s authorities view the expansion of renewable energy as a key component of efforts to reduce the country’s carbon footprint. National greenhouse gas emissions stood at 375.4 million tons in 2020, declined to 328.4 million tons in 2021, and rose again to 353 million tons in 2022, according to previously reported data. The energy sector remains the largest source of emissions, accounting for approximately 281.9 million tons of greenhouse gases in 2022. The Ministry of Energy has said the TotalEnergies project will contribute to the development of green energy, strengthen energy security, and support the country’s broader decarbonization goals. Authorities also plan further expansion of renewable capacity. Ten new projects with a combined capacity of 245 megawatts are expected to be launched this year, covering wind, solar, and hydroelectric generation. Together with existing facilities, they are projected to produce around 8.8 billion kilowatt-hours of electricity. In addition to the Mirny wind farm, other major renewable initiatives involving foreign investors are underway. These include a $1.4 billion wind power project backed by the United Arab Emirates’ Masdar, as well as wind and solar developments led by China Power and China Energy in several regions. Competitive auctions remain the main mechanism for expanding renewable energy capacity. Kazakhstan plans to allocate 6.7 gigawatts of new capacity through auctions between 2024 and 2027. In the longer term, the government aims to bring more than 8 gigawatts of renewable energy capacity online by 2035. As previously reported by The Times of Central Asia, officials have also said the country intends to eliminate its electricity deficit and begin exporting power by 2027.

Renewable energy

Kyrgyzstan’s Renewable Pivot and the Strategic Weight of China’s Rising Role

China’s energy engagement in Central Asia has undergone a quiet but decisive transformation since 2018. What was once a relationship built almost entirely on pipelines, hydrocarbons, and state-backed fossil fuel projects is now expanding into a much more diversified portfolio in which renewable energy plays an increasingly central role. Kazakhstan and Uzbekistan were the first to attract large-scale Chinese commitments in solar and wind power, yet Kyrgyzstan is quickly emerging as the newest frontier in this shift. Recent agreements demonstrate how Bishkek is rapidly positioning itself within China’s clean energy expansion. In 2022, Kyrgyzstan signed an agreement with Chinese investors to build a 1-gigawatt solar plant in Issyk-Kul. Furthermore, the government concluded another agreement with Shenzhen Energy Group for the construction of two additional power plants, one solar and one wind. The Energy Ministry has also reached an investment deal with States Technology Co. and San Energy Co. for a 250-megawatt solar facility in Batken. These projects indicate that Chinese capital is not only filling Kyrgyzstan’s immediate energy gaps, but is also beginning to reshape the country’s long-term energy structure. This push toward solar and wind arrives at a critical moment. Kyrgyzstan remains overwhelmingly dependent on hydropower, which generates more than 90% of the country’s electricity. Yet this climate-sensitive resource is now far less stable than in the past. Shifts in water levels driven by changing weather patterns have introduced new uncertainties into the country’s ability to meet domestic demand. At the same time, electricity consumption has surged at an unprecedented rate, rising by nearly one billion kilowatt hours in a single year due to newly launched industrial enterprises and rapid residential construction. The combination of climate volatility and soaring consumption has placed the energy system under severe strain. The government has declared a three-year energy emergency and introduced consumption restrictions designed to save approximately 40 kilowatt hours per month. Under these conditions, diversifying away from near-total reliance on hydropower is no longer optional but an urgent strategic necessity. Solar and wind investments offer a viable path forward. Expanding renewable capacity will give Kyrgyzstan a more predictable and resilient energy base, enabling the country to better manage seasonal shortages and climate-driven disruptions. Kyrgyzstan also imports all of its fossil fuels. As renewable capacity expands and the use of electric vehicles increases, the country could gradually reduce its dependence on oil imports from Russia, easing both financial pressures and geopolitical exposure. For this reason, cooperation with China represents more than a set of commercial transactions. It is evolving into a strategic pillar of Kyrgyzstan’s broader effort to strengthen energy security and modernize its power system. Chinese companies bring financing, technology, and implementation speed, all of which are essential for a country facing immediate and long-term energy risks. The benefits may extend beyond the domestic market. With sufficient renewable capacity, Kyrgyzstan could eventually re-enter regional electricity trade as an exporter. Some estimates suggest that cross-border energy sales could generate up to 220 million dollars annually in foreign currency earnings, providing a significant...