EBRD Allocates US$142 Million for Uzbekistan’s Largest Solar Energy Project

Tashkent, Uzbekistan (UzDaily.com) — The European Bank for Reconstruction and Development (EBRD) is providing comprehensive financing of US$142 million (€121 million) to two special-purpose vehicles (SPVs) that will implement the largest combined solar photovoltaic and battery energy storage (BESS) project in Uzbekistan and Central Asia to date.

The two SPVs — ACWA Power Sazagan Solar 1 and ACWA Power Sazagan Solar 2 — will be majority-owned by ACWA Power, an international developer, investor, co-owner, and operator of power plants and desalination facilities. Sumitomo Corporation, Shikoku Electric Power Company, and Chubu Electric Power Company will also hold stakes. This investment marks the first entry of Japanese investors into Uzbekistan’s renewable energy and energy storage sector.

The financing package includes two senior secured loans. The first, US$61 million (€52 million), will fund ACWA Power Sazagan Solar 1 to build and operate a 500 MW solar PV plant with a 668 MWh BESS in Samarkand region. The second, US$81 million (€69 million), will fund ACWA Power Sazagan Solar 2 for a 500 MW solar PV plant with 668 MWh BESS in Samarkand and Bukhara regions.

The project will be co-financed by the Japan Bank for International Cooperation, lenders insured by Nippon Export and Investment Insurance, the Asian Development Bank, and the Islamic Development Bank. Together, the two SPVs will provide a combined solar PV capacity of 1 GW and 1,336 MWh BESS, enabling stable integration of renewable energy, enhancing grid reliability, and supplying additional capacity during peak demand.

This initiative supports the state renewable energy program, backed by EBRD, which aims to reach 25 GW of solar and wind generation by 2030. Once operational, the new capacity will generate approximately 2,300 GWh annually, powering around 600,000 households.

EBRD has been a key financier of green projects in Uzbekistan, supporting 1.65 GW of wind, 1.4 GW of solar PV, and 334 MW / 501 MWh of BESS, all delivered by experienced international developers. To date, EBRD has invested over €5.35 billion in 188 projects in Uzbekistan, largely promoting private entrepreneurship and national economic growth.