The European Bank for Reconstruction and Development (EBRD) is playing a crucial role in furthering Uzbekistan’s ambitious renewable energy targets by providing financing for a groundbreaking project in the Tashkent region.
The project consists of a 200 MW solar photovoltaic power plant and a 500 MWh battery energy storage system (BESS), making it one of the largest BESS projects the EBRD has supported in its operational regions.
Project’s Contribution to Energy Security and Emissions Reduction
This initiative, led by ACWA Power Riverside Solar, is expected to significantly contribute to Uzbekistan’s goal of developing up to 25 GW of solar and wind power capacity by 2030. It will enhance the country’s energy security and reduce its reliance on carbon-intensive thermal power generation.
Once operational, the solar plant is projected to generate around 418 GWh of electricity annually, leading to a reduction of over 230,000 tons of CO2 emissions each year.
Diverse Funding Sources
The project’s funding structure includes an A-loan of up to US$183.5 million (€169.8 million) from the EBRD and a B-loan of up to US$40.5 million (€37.5 million) syndicated to commercial co-financiers. The EBRD has also mobilized €5 million (US$5.4 million) from Finland through its High Impact Partnership on Climate Action (HIPCA).
Several other institutions are providing parallel loans to support the project’s implementation. These include the German development corporation DEG, the French development agency Proparco, the Islamic Development Bank, KfW IPEX-Bank, and Standard Chartered Bank.
Significance for Uzbekistan’s Energy Transition
Nandita Parshad, Managing Director of the EBRD’s Sustainable Infrastructure Group, highlighted the project’s strategic importance, stating, “This project is central to Uzbekistan’s ambition to install 25 GW of renewables by 2030. It not only bolsters energy security but also accelerates the transition to a low-carbon economy.”
Marco Arcelli, CEO of ACWA Power, echoed this sentiment, emphasizing Uzbekistan’s proactive approach in attracting private capital for sustainable growth and decarbonization. He stated, “The Tashkent Riverside project reflects strong confidence in ACWA Power as a global leader in renewables and energy storage,” underscoring ACWA Power’s commitment to Uzbekistan’s green energy future.
EBRD’s Investment in Uzbekistan
Uzbekistan remains a key focus for the EBRD’s investments in Central Asia, with approximately €4.7 billion invested in 162 projects thus far. The EBRD primarily supports private entrepreneurship and sustainable development initiatives in the country.