EBRD Commits US$142 Million to Uzbekistan's Landmark 1 GW Solar and Battery Storage Project

EBRD Boosts Uzbekistan's Green Energy Transition with Major Investment

The European Bank for Reconstruction and Development (EBRD) has announced a significant financing package of US$142 million (€121 million equivalent) to support the development of a landmark 1 GW solar photovoltaic (PV) plant and a 1,336 MWh battery energy storage system (BESS) portfolio in Uzbekistan. This initiative marks a pivotal step in the country's and Central Asia's renewable energy landscape, representing the largest combined solar and battery storage project in the region.

The project is being implemented through two special-purpose vehicles (SPVs), ACWA Power Sazagan Solar 1 and ACWA Power Sazagan Solar 2. Saudi developer ACWA Power holds the majority ownership in these SPVs, with notable co-investments from Japanese firms Sumitomo Corporation, Shikoku Electric Power Company, and Chubu Electric Power Company. This collaboration marks the first investment by these Japanese partners in Uzbekistan's renewable energy and BESS sector.

Project Breakdown and Regional Impact

The financing from the EBRD is structured as two senior secured loans:

• A US$61 million (€52 million equivalent) loan allocated to ACWA Power Sazagan Solar 1 for the development, construction, and operation of a 500 MW solar PV plant coupled with a 668 MWh BESS facility in Uzbekistan's Samarkand region.
• An US$81 million (€69 million equivalent) loan provided to ACWA Power Sazagan Solar 2 to support the construction and operation of another 500 MW solar PV plant in the Samarkand region, alongside an additional 668 MWh BESS facility located in the Bukhara region.

Once operational, the combined facilities are projected to generate approximately 2,300 GWh of electricity per year, sufficient to power nearly 600,000 households annually. This substantial output will significantly contribute to the Uzbek government's ambitious renewable energy plan, which aims to achieve 25 GW of installed solar and wind capacity by 2030.

Strategic Importance and Co-financing

The deployment of advanced BESS technology is crucial for enhancing grid reliability and flexibility. It will help stabilize the intermittent nature of renewable power, ensuring a steady energy supply during peak demand periods and supporting the long-term stability of Uzbekistan's power system.

This landmark project is expected to receive co-financing from several leading international institutions, including the Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI)-covered lenders, the Asian Development Bank (ADB), and the Islamic Development Bank (IsDB).

The EBRD has been a key partner in Uzbekistan's green energy development, having invested over €5.35 billion across 188 projects in the country to date. Its support for renewable energy projects includes financing for 1.65 GW of wind power capacity, 1.4 GW of solar PV capacity, and 334 MW/501 MWh of BESS projects across Uzbekistan. The bank's strategy for Uzbekistan, approved until 2029, prioritizes decarbonization, greater water efficiency, and cleaner energy, aligning with the country's goal of achieving a carbon-neutral power sector by 2050.