- The EBRD arranged up to $195.5m in financing for Masdar’s 300 MW solar plant and 75 MWh battery storage project in Uzbekistan.
- The project supports Uzbekistan’s goal of adding 25 GW of renewables by 2030 and enhances grid stability by pairing large-scale solar generation with battery storage.
The European Bank for Reconstruction and Development (EBRD) has arranged up to US$195.5 million in financing for a new solar and battery project in Uzbekistan. The package will support the construction and operation of a 300 MW solar plant and a 75 MWh battery storage facility in the Kashkadarya region.
Furthermore, EBRD will provide a senior loan of up to US$141.6 million and a guaranteed facility of up to US$25 million to Nur Kashkadarya Solar. The Bank is also mobilising concessional finance of up to US$20 million from Canada and US$5 million from Finland through the High Impact Partnership on Climate Action. Additional concessional funding of up to US$3.9 million will be provided by the Japan-EBRD Cooperation Fund and the Bank itself.
The Asian Development Bank is expected to participate in the project’s financing structure.
Meanwhile, Uzbekistan aims to install 25 GW of solar and wind capacity by 2030. The project will support this target. It will generate an estimated 664 gigawatt-hours (GWh) of electricity per year and supply power to approximately 60,000 homes. It will also reduce annual carbon dioxide emissions by up to 400,000 tonnes.
The 75 MW/75 MWh battery system will help stabilise the national grid by providing additional capacity during peak demand. The system will also improve flexibility and support the reliable integration of variable renewables.
EBRD has emerged as a major financier of renewable energy in Uzbekistan. To date, the Bank has supported 1.65 GW of wind capacity, 2.4 GW of solar capacity and 668 MW/1,837 MWh of battery storage projects in the country. Uzbekistan has received almost US$6.8 billion in EBRD investments and has been the Bank’s largest funding recipient in Central Asia for six consecutive years.