PVTIME – Construction has commenced on the $2.6 billion Kungele wind project in the Republic of Karakalpakstan, Uzbekistan. Once completed, it will be the largest wind farm in the Commonwealth of Independent States.
The project is being developed by ACWA Power and Sumitomo Corporation under a build-own-operate-transfer structure and comprises three 500 MW wind farms integrated with a 300 MW/550 MWh battery storage system. The project is designed to generate approximately 5.8 billion kWh of electricity annually under a 25-year power purchase agreement with Uzbekistan’s national grid operator. Commercial operation is expected to begin in the second quarter of 2028.
In parallel, grid infrastructure works are progressing, including the construction of 845 km of new 500 kV transmission lines, three new 500 kV substations, and upgrades to two existing facilities, to create a dedicated transmission backbone for the site.
Financing is being assembled from multiple sources. The Asian Infrastructure Investment Bank has approved $150 million in non-sovereign financing, while the Asian Development Bank is providing a $250 million loan, a $115 million guarantee, and a commercial lending facility of up to $400 million. Additional funding is being structured through Islamic green equity bridge finance and export credit facilities.
Local content commitments form an integral part of the project, with approximately $750 million allocated to domestic procurement. Peak construction is expected to generate around 4,000 job opportunities for Uzbek residents, and 78 local students have commenced specialised training at an energy technology academy in preparation for long-term operations.
The project will significantly help Uzbekistan to achieve its target of increasing renewable energy generation to 40% of total output by 2030, and it is intended to lay the groundwork for future cross-border green electricity trade within Central Asia.
