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The European Bank for Reconstruction and Development (EBRD) is providing $142mn (€121mn) in financing for two special-purpose vehicles (SPVs) set to develop Uzbekistan’s and Central Asia’s largest combined solar photovoltaic and battery energy storage project to date. The two SPVs—ACWA Power Sazagan Solar 1 and ACWA Power Sazagan Solar 2—will be majority owned by ACWA Power, an international developer, investor, and operator of power-generation and desalinated-water plants. Japanese companies Sumitomo Corporation, Shikoku Electric Power Company, and Chubu Electric Power Company will also hold minority stakes, marking their first investment in renewable energy and battery energy storage systems (BESSs) in Uzbekistan. The financing package consists of two senior secured loans. ACWA Power Sazagan Solar 1 will receive $61mn (€52mn) for a 500 MW solar photovoltaic plant and a 668 MWh BESS in the Samarkand region. ACWA Power Sazagan Solar 2 will receive $81mn (€69mn) for a 500 MW solar plant in Samarkand and a 668 MWh BESS in Bukhara. The project is expected to attract additional co-financing from the Japan Bank for International Cooperation, lenders covered by Nippon Export and Investment Insurance, the Asian Development Bank, and the Islamic Development Bank. Together, the two SPVs will deliver 1 GW of solar capacity and 1,336 MWh of BESS, making it the largest deployment of combined solar and battery storage in Uzbekistan and the region. The BESS technology will enhance grid reliability and flexibility by supplying additional energy during periods of peak demand, helping to mitigate the intermittency of renewable energy. The project is aligned with the government’s renewable energy plan, supported by the EBRD, which targets 25 GW of solar and wind capacity by 2030. Once operational, the new capacity is expected to generate around 2,300 GWh annually—enough to power roughly 600,000 households. The EBRD has played a key role in developing green energy in Uzbekistan, supporting 1.65 GW of wind, 1.4 GW of solar photovoltaic, and 334 MW/501 MWh of BESS capacity to date. Overall, the Bank has invested over €5.35bn across 188 projects in Uzbekistan, with a strong focus on private-sector development and economic growth. Earlier, the Asian Development Bank (ADB), together with ACWA Power and Japanese partners, signed a $140mn financing package to build two large-scale solar power plants with BESS in Uzbekistan. ADB will provide $70mn from its capital, $10mn from the LEAP 2 fund, and $60mn in syndicated loans, along with up to $85mn in credit guarantees.
