The European Bank for Reconstruction and Development (EBRD) is co-financing a solar energy and battery project in Uzbekistan by offering a financing package of €121m ($142m).
This project includes two special-purpose vehicles (SPVs), ACWA Power Sazagan Solar 1 and ACWA Power Sazagan Solar 2.
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Together, the SPVs will set an integrated solar photovoltaic (PV) and battery energy storage system (BESS) project with a combined capacity of 1GW in Central Asia.
ACWA Power holds the majority stake in the SPVs, with Sumitomo, Shikoku Electric Power Company, and Chubu Electric Power Company as co-investors.
This marks the debut investment in renewable energy and BESSs in Uzbekistan by these Japanese investors.
The financing package comprises two senior secured loans.
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By GlobalDataThe first loan of €52m will finance ACWA Power Sazagan Solar 1 in developing a 500MW solar PV power plant and a 668MWh BESS in the Samarkand region.
The second loan of €69m will fund ACWA Power Sazagan Solar 2 in constructing a 500MW solar plant in Samarkand and a 668MWh BESS in the Bukhara region.
The project is expected to receive co-financing from the Japan Bank for International Cooperation, Nippon Export and Investment Insurance, the Asian Development Bank, and the Islamic Development Bank.
This BESS deployment is designed to enhance grid reliability and flexibility by mitigating the intermittency of renewable energy sources.
The project supports Uzbekistan’s wider renewables plan, supported by the EBRD, which aims for 25GW of solar and wind capacity by 2030.
Once operational, the project is expected to produce approximately 2,300GWh of electricity annually, enough for powering roughly 600,000 households.
The EBRD has been a significant financier of Uzbekistan’s green energy projects, supporting 1.65GW of wind capacity, 1.4GW of solar PV, and 334MW of BESSs in the country.
Last month, the EBRD announced plans to provide a comprehensive financing package for the development and construction of a 200MW wind farm in Ras Ghareb, Egypt.
