Japanese NEXI to Insure Construction of Uzbekistan’s Largest Solar Power Plants

Tashkent, Uzbekistan (UzDaily.com) — The Japanese company Nippon Export and Investment Insurance (NEXI) will provide insurance coverage for loans issued by commercial banks to support the construction of Uzbekistan’s largest solar power plants and energy storage systems.

The projects involve Sumitomo Corporation, Chubu Electric Power Co., Shikoku Electric Power Company, and ACWA Power Company. They include the construction and operation of solar power plants with a total capacity of 1,000 MW and energy storage systems with a capacity of 1,336 MWh in the Samarkand and Bukhara regions. The commercial launch of these facilities is planned for 2027. All electricity generated will be supplied to the state-owned National Electric Grid of Uzbekistan (NEGU) under 25-year power purchase agreements (PPAs).

Project financing is supported by the Japan Bank for International Cooperation (JBIC), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), Islamic Development Bank (IsDB), as well as commercial banks including Sumitomo Mitsui Banking Corporation, Standard Chartered Bank Tokyo Branch, The Norinchukin Bank, and KfW IPEX-Bank. NEXI’s insurance coverage for commercial bank loans will amount to approximately USD 425 million. This marks the first collaboration between NEXI and the Islamic Development Bank on a specific investment project under a memorandum of understanding signed in 2019.

For these projects, NEXI applies its Loan Insurance for Green Innovation program with a commercial risk coverage level of 97.5%, reflecting their significant contribution to environmental protection and climate change mitigation. The initiative aligns with the LEAD environmental program, aimed at promoting green innovation and sustainable development.

ACWA Power Company, acting as a co-investor alongside Japanese partners, is the largest independent power producer (IPP) in the Middle East, operating more than 100 facilities across 15 countries, including Central Asia and Africa. Its principal shareholder is the Saudi Arabia Public Investment Fund (PIF). The financing agreements were announced on October 28 at the 9th Future Investment Initiative (FII) Forum in Riyadh.

Collaboration with ACWA Power on these projects will strengthen Japan-Saudi Arabia and Japan-Uzbekistan relations and promote regional energy partnership development.

Uzbekistan’s population and economic growth are driving higher electricity demand, with around 80% currently generated from gas-fired plants, many of which require modernization. The Uzbek government aims to increase the share of renewable energy to 30% of installed capacity by 2030, and the NEXI-backed projects will be a significant step toward achieving this goal.

These initiatives are also aligned with Japan’s Overseas Infrastructure System Strategy through 2030, which emphasizes the green transition (GX), climate change mitigation, and environmental protection. The projects support cooperation under the “Central Asia plus Japan” dialogue and the 2023-established Economic and Energy Dialogue, which seeks to accelerate the energy transition through public-private partnerships.

NEXI’s financial support expands opportunities for Japanese companies in Central Asia, reinforcing their position in the renewable energy sector. The company has reaffirmed its commitment to actively support international initiatives of Japanese businesses as an institution implementing Japan’s government policy on sustainable development.