ADB and Masdar Sign US$30 Million Deal to Expand Solar Power and Energy Storage in Uzbekistan

Tashkent, Uzbekistan (UzDaily.com) — The Asian Development Bank (ADB) and Abu Dhabi Future Energy Company PJSC (Masdar) have signed a US$30 million financing package for the construction of a 300 MW solar power plant and a 75 MWh battery energy storage system (BESS) in the city of Guzar, Kashkadarya region, Uzbekistan.

The Guzar Solar and Battery Energy Storage project is expected to increase the share of renewable energy in Uzbekistan and advance the country’s transition toward a low-carbon economy. The project also includes the construction of grid connection infrastructure, comprising 1.6 km of transmission lines and a 220 kV substation, ensuring integration of renewable energy into the national power system.

The financing package consists of US$12.5 million in ADB loans, US$12.5 million from the Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), and US$5 million from the Canada Asia Private Sector Climate and Nature Trust (CANPA). Both funds are administered by ADB.

“This project demonstrates ADB’s commitment to supporting the clean energy transition in the Asia-Pacific region and underscores Uzbekistan’s path to energy security,” said Kanokpan Lao-Araya, ADB Director for Uzbekistan. “Combining large-scale solar generation with BESS will help meet growing electricity demand, enhance supply reliability, reduce greenhouse gas emissions, and support Uzbekistan’s sustainable development goals.”

Upon completion, the project is expected to increase annual electricity generation in Uzbekistan by 634 GWh and reduce CO₂ emissions by at least 354,000 tons, contributing to the country’s goal of achieving a 40% share of renewables in the energy mix by 2030.

ADB is providing partial credit support to Nur Kashkadarya Solar PV Foreign Enterprise LLC, a special-purpose vehicle wholly owned by Masdar and established to implement the project. This guarantee, covering a US$9 million letter of credit, will help mitigate risks associated with the power purchase obligations.

In 2025, ADB and the Republic of Uzbekistan marked 30 years of partnership. Since joining the bank in 1995, Uzbekistan has received loans, grants, and technical assistance totaling US$15.8 billion. LEAP 2, managed by ADB, has US$1.5 billion in commitments from the Japan International Cooperation Agency. Established in 2023, the fund focuses on private-sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and provide affordable healthcare, education, and connectivity for developing ADB member countries.

CANPA, created in 2024, is a trust fund managed by ADB and supported by the Government of Canada with CUS$360 million in commitments. Building on the success of the CFPS and CFPS II funds, CANPA supports private-sector projects in Asia and the Pacific that promote climate and nature-based solutions and gender equality.

Masdar is a global clean energy company headquartered in the UAE. By the end of 2025, its total installed renewable energy capacity exceeded 50 GW, with a target of 100 GW by 2030. ADB has financed nine Masdar projects, six of which are being implemented in Uzbekistan.

ADB is a leading multilateral development bank supporting inclusive, sustainable, and stable growth in Asia and the Pacific. Working with member countries and partners, the bank uses innovative financial instruments and strategic partnerships to transform lives, develop high-quality infrastructure, and protect the planet. Established in 1966, ADB is owned by 69 countries, 50 of which are in the region.