Economy & Markets

The Adani Group is engaged in high-level discussions with the Uzbekistan government to develop four pumped-storage projects (PSPs) totaling approximately 5 gigawatts (GW) of capacity. These talks, which took place in August involving Investment, Industry and Trade Minister Laziz Kudratov and O'zbekgidroenergo JSC officials, aim to support Uzbekistan's goal of sourcing 50% of its electricity from renewables by 2030. Based on a benchmark cost of ₹6 crore per megawatt, the proposed investment is indicative of ₹30,000 crore. This initiative aligns with Prime Minister Narendra Modi's recent diplomatic visit to Uzbekistan, where both nations agreed to enhance cooperation in clean energy and connectivity. The project represents a significant step for Adani Green Energy to expand its hydropower and storage portfolio beyond India, where it is currently developing around 3 GW of PSP capacity and has operational experience in Bhutan. For Uzbekistan, these projects address critical grid stability needs as it seeks to utilize its untapped hydropower potential, estimated at up to 12 GW compared to current operational levels of 2.5 GW. Strategically, the venture positions India to deepen its commercial footprint in Central Asia amidst growing competition from China, Saudi Arabia, and the UAE. Experts note that while Chinese entities like Huaneng Renewables have committed billions to regional renewable projects, Adani's entry strengthens the recently upgraded 'comprehensive strategic partnership' between India and Uzbekistan. This move is viewed as vital for India's aspirations in regional energy trade and export, countering the expanding economic influence of other global powers in the resource-rich region