EBRD Finances Major Solar Power Project in Uzbekistan

The European Bank for Reconstruction and Development (EBRD) will provide up to $195.5 million to support the construction and operation of a new 300 MW solar photovoltaic (PV) power plant along with a 75 MWh battery energy storage system (BESS) in Uzbekistan’s Kashkadarya region.

The financing package includes an EBRD loan of up to $141.6 million and a guarantee of up to $25 million for Nur Kashkadarya Solar PV FE LLC, a special-purpose project company fully owned by Masdar, a global renewable and clean energy company, The Caspian Post reports, citing Uzbek media.

In addition, the EBRD will mobilize concessional financing of up to $20 million from the Government of Canada and $5 million from the Government of Finland through the High Impact Partnership on Climate Action (HIPCA). The project is also expected to benefit from concessional funding of up to $3.9 million from the Japan-EBRD Cooperation Fund and the EBRD. Co-financing from the Asian Development Bank is also anticipated.

The project is aligned with Uzbekistan’s renewable energy development strategy, which is supported by the EBRD and aims to achieve 25 GW of installed solar and wind capacity by 2030.

Once operational, the solar power plant is expected to produce 664 GWh of electricity per year, sufficient to supply around 60,000 households and reduce carbon dioxide emissions by approximately 400,000 tons annually.

The addition of a 75 MW/75 MWh battery energy storage system will improve the stability, reliability, and flexibility of the national power grid, enabling additional capacity during periods of peak electricity demand.