The Asian Development Bank (ADB) has joined forces with leading international energy companies - ACWA Power, Sumitomo Corporation, Chubu Electric Power Co. Inc., and Shikoku Electric Power Co. Inc. - to launch a landmark financing initiative aimed at accelerating Uzbekistan’s renewable energy transformation.
Under the agreement, the partners will develop two major solar power projects equipped with advanced battery energy storage systems (BESS), The Caspian Post reports, citing Uzbek media.
Known as the Samarkand 1 and Samarkand 2 Solar PV and BESS projects, these facilities will be constructed in the Samarkand and Bukhara regions, playing a pivotal role in strengthening the country’s clean energy infrastructure.
“ADB is pleased to support Uzbekistan in advancing one of the most significant renewable energy initiatives in Central Asia,” said ADB President Masato Kanda. “These solar and battery plants demonstrate the power of partnership and innovation - delivering reliable, affordable, and sustainable energy while reducing emissions. By combining technical ambition with financial ingenuity, the collaboration sets a strong precedent for Central Asia’s clean energy future.”
The projects will add 1,000 megawatts (MW) of solar generation capacity and about 1,336 megawatt-hours (MWh) of battery storage. They also include the construction of transmission lines and two new substations to enhance grid stability and connectivity. Once operational, the facilities are expected to provide clean electricity to around 600,000 households and reduce carbon dioxide emissions by approximately 1.3 million tons annually.
ADB arranged a $140 million financing package, including $70 million from its own resources, $10 million from the Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), and $60 million in syndicated loans for which ADB acts as the lender of record. To improve the projects’ bankability and mitigate risks, ADB will also extend up to $85 million in credit guarantees covering the off-taker’s tariff payment obligations. Supported by the Government of Uzbekistan, these guarantees helped mobilize over $1.2 billion in total private and partner capital.
ADB is also serving as the environmental and social coordinator, ensuring that the projects meet international standards of environmental protection and community engagement. With its combined financing, risk mitigation, and technical support, ADB’s involvement is expected to unlock more than $1.2 billion in climate-aligned investments, making it one of the largest clean energy transactions in Central Asia.
Other international financing partners include the European Bank for Reconstruction and Development (EBRD), Islamic Development Bank (IsDB), and Japan Bank for International Cooperation (JBIC). Commercial banks participating under Japan’s Nippon Export and Investment Insurance (NEXI) cover are Standard Chartered Bank, The Norinchukin Bank, Sumitomo Mitsui Banking Corporation, and KfW IPEX-Bank GmbH.
