The Asian Development Bank (ADB) and Abu Dhabi Future Energy Company Private Joint Stock Company (Masdar) have signed a $30 million financing package to develop a 300-megawatt solar power plant and a 75-megawatt-hour battery energy storage system (BESS) in Guzar City, located in the Kashkadarya Region of Uzbekistan. The project, known as the Guzar Solar and Battery Energy Storage Project, is designed to increase the country’s renewable energy capacity and advance Uzbekistan’s transition to a low-carbon economy. It also includes the construction of 1.6 kilometers of transmission lines and a 220-kilovolt substation to integrate renewable energy into the national power grid effectively.
The financing package consists of a $12.5 million loan from ADB, a $12.5 million loan from the Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), and a $5 million loan from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA), both of which are administered by ADB. ADB Country Director for Uzbekistan Kanokpan Lao-Araya emphasized the significance of the project, stating that it demonstrates ADB’s strong commitment to supporting clean energy transition across Asia and the Pacific, and specifically Uzbekistan’s path toward energy security. By combining large-scale solar generation with battery energy storage, the project is expected to meet growing electricity demand, improve power reliability, reduce greenhouse gas emissions, and support the country’s commitment to a sustainable energy future.
Once operational, the Guzar project is projected to produce an additional 634 gigawatt-hours of electricity annually and reduce carbon dioxide emissions by at least 354,000 tons each year. These contributions will support Uzbekistan’s goal of achieving a 40 per cent share of renewable energy in its power generation mix by 2030. ADB is also providing a partial credit guarantee to Nur Kashkadarya Solar PV Foreign Enterprise LLC, the special purpose vehicle established for the project and wholly owned by Masdar. This guarantee, covering a letter of credit of up to $9 million, is intended to mitigate risks associated with the power offtaker’s payment obligations.
The project coincides with the 30th anniversary of ADB’s partnership with the Republic of Uzbekistan. Since joining ADB in 1995, Uzbekistan has received public sector loans, grants, and technical assistance totaling $15.8 billion. LEAP 2, managed by ADB and established in 2023 with a $1.5 billion commitment from the Japan International Cooperation Agency, focuses on sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and provide affordable services in areas such as health care, education, and communications.
CANPA, established in 2024 and supported by Can$360 million from the Government of Canada, builds on previous Canadian Climate Funds and is designed to support private-sector projects in Asia and the Pacific that emphasize climate and nature-based solutions while promoting gender equality. Masdar, a global clean energy company based in the United Arab Emirates, had a total gross generation capacity of more than 50 gigawatts from operational and under-development renewable energy projects worldwide by the end of 2025, with plans to expand to 100 gigawatts by 2030. ADB has financed nine projects with Masdar, six of which are located in Uzbekistan.
Founded in 1966, ADB is a leading multilateral development bank that supports inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners, ADB employs innovative financial tools and strategic partnerships to build quality infrastructure, transform lives, and protect the environment. It is owned by 69 members, including 50 from the region.
Discover more from SolarQuarter
Subscribe to get the latest posts sent to your email.
