EBRD finances major renewable energy project in Uzbekistan

• EBRD organising financing of up to US$ 195.5 million for major renewable energy and battery development
• Funds will support construction of 300 MW solar plant and 75 MWh battery storage facility
• Project will be co-financed by Canada, Finland, Japan

The European Bank for Reconstruction and Development (EBRD) continues to invest in renewable energy power generation and in the safe and reliable connection of variable renewables to Uzbekistan’s power grid by organising a financing package of up to US$ 195.5 million (€168.5 million) for the construction and operation of a 300 MW greenfield solar photovoltaic plant and a 75 MWh battery storage facility in the Kashkadarya region.

The EBRD financing package, consisting of the EBRD’s senior loan of up to US$ 141.6 million (€122.1 million) and a guaranteed facility of up to US$ 25.0 million (€21.6 million), will be provided to Nur Kashkadarya Solar, a special-project company fully owned by a global renewable and clean energy company Masdar.

The EBRD is also mobilising concessional finance of up to US$ 20.0 million (€17.2 million) from Canada and US$ 5 million (€4.3 million) from Finland under the Special Fund for the High Impact Partnership on Climate Action (HIPCA). In addition, the project will benefit from concessional finance of up to US$ 3.9 million (€3.4 million) provided by the Japan-EBRD Cooperation Fund and the EBRD. Additionally, the project is expected to be co-financed by the Asian Development Bank.

The project will be contributing to the government’s renewables development plan, supported by the EBRD, which targets the development of 25 GW of solar and wind capacity by 2030. On completion, the solar plant will be generating 664 GWh of electricity per year - providing electricity enough to power 60,000 homes and reduce annual CO2 emissions by up to 400,000 tonnes.

The project is expected to contribute to the stability of the national grid, introducing 75MW/75MWh capacity of battery energy storage system (BESS). BESS helps improve the grid reliability and flexibility by making additional energy capacity available during periods of peak demand.

The EBRD is a major financier of green energy projects in Uzbekistan. To date the Bank has supported 1.65 GW of wind capacity, 2.4 GW of solar photovoltaic and 668 MW/1,837 MWh of battery energy storage systems in the country – projects sponsored by experienced international developers.

The Bank has invested almost US$6.8 billion in Uzbekistan to date across 204 projects, with most of the funds supporting private entrepreneurship. The country has been the leading recipient of EBRD funding in Central Asia for each of the past six years.