EBRD Approves US$142 Million Financing For Uzbekistan’s Largest 1 GW Solar And 1,336 MWh Battery Energy Storage Project With ACWA Power

The European Bank for Reconstruction and Development (EBRD) has announced a major financing package worth US$142 million (€121 million) to support the development of Uzbekistan’s and Central Asia’s largest combined solar photovoltaic and battery energy storage project to date. This milestone initiative will be implemented through two special-purpose vehicles (SPVs) — ACWA Power Sazagan Solar 1 and ACWA Power Sazagan Solar 2 — marking a transformative step in the region’s renewable energy journey and setting new benchmarks for large-scale clean energy integration.

Both SPVs will be majority-owned by ACWA Power, a globally recognized developer, investor, and operator of power generation and desalinated water projects. The SPVs will also include co-investments from prominent Japanese companies Sumitomo Corporation, Shikoku Electric Power Company, and Chubu Electric Power Company. Notably, this project represents the first investment by Japanese partners in Uzbekistan’s renewable energy and battery energy storage system (BESS) sector, demonstrating growing international confidence in the country’s clean energy transition.

The EBRD’s financing package consists of two senior secured loans. The first loan, amounting to US$61 million (€52 million equivalent), will go to ACWA Power Sazagan Solar 1 for the development, construction, and operation of a 500 MW solar photovoltaic plant coupled with a 668 MWh BESS facility in Uzbekistan’s Samarkand region. The second loan, valued at US$81 million (€69 million equivalent), will be provided to ACWA Power Sazagan Solar 2 to support the construction and operation of another 500 MW solar photovoltaic power plant in the Samarkand region, along with an additional 668 MWh BESS facility in the Bukhara region.

This landmark project will be co-financed by leading international institutions including the Japan Bank for International Cooperation, Nippon Export and Investment Insurance (NEXI)-covered lenders, the Asian Development Bank (ADB), and the Islamic Development Bank (IsDB). Collectively, the two SPVs will add an unprecedented 1 GW of solar photovoltaic capacity and 1,336 MWh of battery energy storage to Uzbekistan’s energy grid — the largest such integration in both the country and the Central Asian region. The deployment of advanced BESS technology will enhance grid reliability and flexibility by stabilizing the intermittent nature of renewable power, ensuring a steady energy supply during peak demand periods, and supporting the long-term stability of Uzbekistan’s power system.

Once operational, the project is expected to generate approximately 2,300 GWh of electricity per year, enough to power nearly 600,000 households annually. This will make a substantial contribution to the Uzbek government’s renewable energy plan, which aims to achieve 25 GW of installed solar and wind capacity by 2030. Supported by the EBRD, this plan underscores Uzbekistan’s ambition to reduce its dependence on fossil fuels and transition toward a more sustainable and diversified energy mix.

The EBRD has been a key partner in Uzbekistan’s green energy development, already financing 1.65 GW of wind power capacity, 1.4 GW of solar PV capacity, and 334 MW/501 MWh of BESS projects across the country. These initiatives, led by globally experienced developers, have positioned Uzbekistan as one of Central Asia’s fastest-growing renewable energy markets.

To date, the EBRD has invested more than €5.35 billion across 188 projects in Uzbekistan, with a significant portion of this funding directed toward private sector development and sustainable infrastructure. Through its continued investments, the EBRD is not only supporting Uzbekistan’s clean energy transformation but also helping drive economic diversification and long-term energy security for the nation.