ACWA Power Closes $533M for Uzbekistan Solar-BESS Project

  • ACWA Power completed the $533M financial close for Tashkent Riverside, which includes a 500MWh battery energy storage system (BESS) and a 200MW solar PV plant.
  • Six lenders provide $386M in debt financing, covering over two-thirds of the project’s cost.
  • The project will generate 418GWh annually, cut CO2 emissions by 230,000 tonnes, and stabilise Uzbekistan’s power grid with Central Asia’s largest BESS.

ACWA Power, listed in Saudi Arabia, has completed the financial close for the $533 million Tashkent Riverside project. This project includes a 500MWh battery energy storage system (BESS) and a 200MW solar PV plant, making it Central Asia’s largest BESS. It is designed to stabilise Uzbekistan’s power grid.

Six lenders, including the European Bank for Reconstruction and Development (EBRD), Islamic Development Bank (IsDB), DEG, Proparco, Standard Chartered, and KfW-IPEX Bank, signed the financing agreements. They provided $386 million in debt, covering over two-thirds of the total cost.

The BESS will store surplus electricity during high production and release it during low production, ensuring a reliable supply to the grid. This system helps mitigate the intermittency of renewable energy sources and meets Uzbekistan’s growing energy demands.

Marco Arcelli, CEO of ACWA Power, said, “Uzbekistan stands out for attracting private capital for growth and decarbonisation. The Tashkent Riverside project agreement reflects the trust in ACWA Power’s renewables and energy storage leadership. We look forward to advancing Uzbekistan’s low-carbon future.”

The solar power plant will generate 418GWh of electricity annually, reducing CO2 emissions by over 230,000 tonnes yearly. This effort aligns with the Global Renewables and Energy Efficiency Pledge launched at COP28 and supports Uzbekistan’s goal to install 25 GW of renewables by 2030.

Nandita Parshad, Managing Director of the EBRD’s Sustainable Infrastructure Group, noted, “We are proud to partner on the Tashkent Solar PV and energy storage project, the largest in Central Asia. This project can power 170,000 households and offers battery storage equivalent to 8,000 electric vehicles.”

Uzbekistan ranks ACWA Power’s second-largest investment market, with a portfolio totalling 11.6 GW of power, including 10.1 GW in renewables. ACWA Power recently signed a $4.85 billion power purchase agreement for Central Asia’s largest wind farm, the Aral 5GW Wind IPP project in Karakalpakstan.

The Tashkent Riverside project represents a significant step towards decreasing Uzbekistan’s reliance on carbon-intensive thermal power and transitioning to a low-carbon economy. Under its government’s vision and leadership, Uzbekistan demonstrates a proactive approach to embracing renewable energy.

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