Masdar to Launch 2 GW Wind Project in Uzbekistan
Masdar Begins Feasibility Study for 2 GW Wind Power Project in Uzbekistan
Masdar, a leading renewable energy company based in the UAE, has initiated the feasibility study for a significant 2 GW wind power plant in the Mingbulak district of Uzbekistan’s Namangan region. This ambitious project is strategically divided into two phases and also includes plans for energy storage systems with a capacity of 1.15 GWh across various locations in the country. The announcement came from Maryam Rashed Al Mazrouei, Masdar’s Head of Business Development and Investment for the CIS, during the recent 58th Annual Meeting of the Asian Development Bank held in Milan.
In December 2023, Masdar formalized an agreement with Uzbekistan’s Ministry of Investments, Industry, and Trade, along with the Ministry of Energy, to embark on this groundbreaking project. The total investment is projected at $2.6 billion.
According to Al Mazrouei, the project will kick off with a 1 GW development, with a feasibility study already underway to ensure the necessary wind data is gathered over at least 12 months. This data will be crucial for finalizing the financial specifics of the project, which is expected to be operational by 2029. The initial phase is estimated to cost less than $500 million.
Alongside the wind farm, Masdar plans to implement energy storage systems that operate independently of specific generation projects. The company is already advancing energy storage initiatives in Bukhara and the Guzar district, where these systems will function as separate, standalone units.
Masdar’s collaboration extends to a pumped-storage hydropower station (PSH) project with Uzbekhydroenergo, reflecting a comprehensive approach to energy generation and storage. Although still in early development, a feasibility study has been completed, guiding the next steps.
Competitive Landscape and Tariff Policy
Masdar has been successful in Uzbekistan primarily through competitive tenders, striking deals that demonstrate their ability to deliver cost-effective energy solutions. Al Mazrouei noted that while the Zarafshan wind farm is backed by a bilateral agreement, all other projects have been secured through transparent bidding processes—which underscores Masdar’s competitive pricing.
Contracts for Masdar’s projects are anchored in fixed prices within power purchase agreements (PPAs) lasting 25 years. However, the company is currently assessing its potential operations in Uzbekistan’s forthcoming wholesale electricity market, which is anticipated to transition by 2027, later than the initially planned 2025.
As the market evolves, the regulatory framework will be pivotal. Al Mazrouei emphasized the need for clear policies and mechanisms to guide market participants effectively. The establishment of the Energy Market Development and Regulation Agency in 2023 is a promising step toward this goal, aimed at fostering a competitive environment in Uzbekistan’s energy sector.
Future Prospects
Masdar’s footprint in Uzbekistan is substantial, boasting a total of 2 GW of renewable energy capacity, including solar and wind projects. The company’s first endeavor in the country, a modest 100 MW solar project named Nur-Navoi, has since blossomed into a diverse portfolio that includes the region’s largest wind farm.
Looking forward, Masdar is doubling its investment in Uzbekistan’s energy sector to $4 billion, indicating strong confidence in the country’s renewable energy potential. A recent agreement signed at the UN Climate Conference COP29 will see the construction of a 1000 MW wind power plant in the Uchquduq district, which will deliver annual electricity generation of 3.5 billion kWh. This project is expected to conserve 1 billion cubic meters of natural gas and significantly reduce harmful emissions.
As Masdar continues to forge ahead with its plans, the company is not just investing in infrastructure but also supporting Uzbekistan’s transition towards a sustainable energy future.
