Wedoany.com Report-Oct. 31, The European Bank for Reconstruction and Development (EBRD) is co-financing a large-scale solar and battery project in Uzbekistan with a €121m ($142m) financing package. The initiative involves two special-purpose vehicles (SPVs), ACWA Power Sazagan Solar 1 and ACWA Power Sazagan Solar 2, which will jointly develop an integrated solar photovoltaic (PV) and battery energy storage system (BESS) project with a combined capacity of 1GW in Central Asia.

The financing package is make up of two senior secured loans.

ACWA Power holds the majority stake in both SPVs, while Japanese investors Sumitomo, Shikoku Electric Power Company, and Chubu Electric Power Company participate as co-investors. This marks the first renewable energy and BESS investment in Uzbekistan by these Japanese companies.

The financing package includes two senior secured loans. The first loan of €52m will support ACWA Power Sazagan Solar 1, covering the development of a 500MW solar PV plant and a 668MWh BESS in the Samarkand region. The second loan of €69m will fund ACWA Power Sazagan Solar 2, which involves constructing a 500MW solar plant in Samarkand and a 668MWh BESS in the Bukhara region. The project is also expected to receive co-financing from the Japan Bank for International Cooperation, Nippon Export and Investment Insurance, the Asian Development Bank, and the Islamic Development Bank.

The BESS installations are designed to improve grid reliability and flexibility by addressing the intermittency of solar energy. The project aligns with Uzbekistan’s broader renewable energy objectives, supported by the EBRD, which targets 25GW of solar and wind capacity by 2030. Once operational, the project is projected to generate approximately 2,300GWh of electricity annually, sufficient to power around 600,000 households.

The EBRD has been a major supporter of Uzbekistan’s green energy sector, having financed 1.65GW of wind capacity, 1.4GW of solar PV, and 334MW of BESS projects in the country. The bank’s involvement underscores its commitment to advancing sustainable energy solutions and facilitating energy transition in Central Asia.

In addition to Uzbekistan, the EBRD is expanding its renewable energy portfolio globally. Last month, it announced plans to provide a comprehensive financing package for the development and construction of a 200MW wind farm in Ras Ghareb, Egypt, further demonstrating its ongoing commitment to supporting large-scale clean energy projects worldwide.

This Uzbekistan solar and battery initiative represents a strategic step toward enhancing energy security, grid stability, and renewable integration, while fostering international collaboration between EBRD, ACWA Power, and Japanese co-investors. The project sets a benchmark for future renewable energy developments in Central Asia and reinforces Uzbekistan’s position as an emerging hub for clean energy investment.