The European Bank for Reconstruction and Development (EBRD) has announced a new investment to support Uzbekistan’s transition to clean energy. The Bank is arranging a financing package of up to US$195.5 million (€168.5 million) for the development of a 300 MW solar photovoltaic plant and a 75 MWh battery storage facility in the Kashkadarya region. This project is a greenfield development, meaning it will be built completely from the ground up.
The financing package includes an EBRD senior loan of up to US$141.6 million (€122.1 million) along with a guaranteed facility of up to US$25 million (€21.6 million). These funds will be provided to Nur Kashkadarya Solar, a special-purpose company fully owned by Masdar, a leading global renewable and clean energy company.
To strengthen the project further, the EBRD is mobilising concessional funding from several international partners. This includes up to US$20 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 receive up to US$3.9 million (€3.4 million) from the Japan-EBRD Cooperation Fund and the EBRD. The Asian Development Bank is also expected to participate as a co-financier, adding to the project’s overall financial strength.
The new solar power plant will play a significant role in supporting Uzbekistan’s renewable energy expansion plan, which aims to develop 25 GW of solar and wind capacity by 2030. When completed, the plant is expected to generate around 664 GWh of electricity each year. This output will be sufficient to supply power to approximately 60,000 homes while also helping the country reduce its annual carbon dioxide emissions by up to 400,000 tonnes.
A key component of the project is the battery energy storage system (BESS), with a capacity of 75 MW/75 MWh. This system will help stabilise the national electricity grid by storing excess energy and releasing it during peak demand periods. BESS technology is becoming increasingly important as countries integrate more renewable energy sources, helping improve grid flexibility and reliability.The EBRD has become a major supporter of Uzbekistan’s clean energy transition. To date, the Bank has financed 1.65 GW of wind energy capacity, 2.4 GW of solar photovoltaic capacity, and 668 MW/1,837 MWh of battery storage systems in the country.
These investments have been carried out in collaboration with experienced international developers.Overall, the EBRD has invested almost US$6.8 billion in Uzbekistan across 204 projects. Most of the Bank’s funding in the country has been directed toward private sector development. Uzbekistan has also been the largest recipient of EBRD financing in Central Asia for six consecutive years, highlighting the strong partnership between the Bank and the country’s development goals.
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