The European Bank for Reconstruction and Development is providing US$142 million (€121 million) to support Central Asia’s biggest combined solar and battery energy storage development, according to the bank.
The financing will go to two special-purpose vehicles owned mainly by ACWA Power and Japanese partners Sumitomo Corporation, Shikoku Electric Power Company and Chubu Electric Power Company.
The projects – ACWA Power Sazagan Solar 1 and ACWA Power Sazagan Solar 2 – will build a total of 1GW of solar generation and 1,336 MWh of battery capacity in the Samarkand and Bukhara regions of Uzbekistan.
The first loan of US$61 million (€52 million) will support a 500MW solar plant and 668 MWh battery in Samarkand, while a second loan of US$81 million (€69 million) will finance a 500MW solar facility in Samarkand and a 668 MWh battery in Bukhara.
The project is expected to attract additional co-financing from the Japan Bank for International Cooperation, Nippon Export and Investment Insurance-covered lenders, the Asian Development Bank and the Islamic Development Bank.
Together the installations will deliver the region’s largest solar and BESS capacity, helping to stabilise the grid and boost flexibility by supplying stored energy during peak demand periods.
According to the EBRD, the combined capacity will generate about 2,300 GWh of electricity a year – enough to power around 600,000 homes – and contribute to Uzbekistan’s target of 25GW of renewables by 2030.
The bank has already supported 1.65GW of wind, 1.4GW of solar and 334MW / 501MWh of battery storage in Uzbekistan, bringing its total investment in the country to more than €5.35 billion across 188 projects.