The European Bank for Reconstruction and Development (EBRD) is providing up to $229.4mn for a 500-MWh battery energy storage system (BESS) and a 200-MW solar photovoltaic power plant in Tashkent, advancing Uzbekistan's goal of 25 GW of solar and wind capacity by 2030.

This project, one of the largest EBRD-supported BESS ventures, will enhance the safe and reliable integration of intermittent renewable energy sources into the national grid. 

The financing will be provided to ACWA Power Riverside Solar, a special-purpose company fully owned by ACWA Power, an international developer, investor, co-owner, and operator of a diverse portfolio of power generation, desalinated water production, and green hydrogen plants.

The EBRD's financing package includes an A-loan of up to $183.5mn (€169.8mn) for its account and a B-loan of up to $40.5mn (€37.5mn) syndicated to commercial co-financiers. 

Additionally, the EBRD is mobilising concessional finance of up to €5mn ($5.4mn) from Finland under the High Impact Partnership on Climate Action (HIPCA).

The project will receive additional financing from the German development corporation DEG, the French development agency Proparco, the Islamic Development Bank, KfW IPEX-Bank, and Standard Chartered Bank.

Upon completion, the solar power project is expected to generate up to 418 GWh of electricity annually, reducing CO2 emissions by more than 230,000 tonnes each year. 

This will decrease Uzbekistan's reliance on carbon-intensive thermal power generation, facilitating the country's transition to a low-carbon economy in line with the Global Renewables and Energy Efficiency Pledge launched at COP28.

“We are proud to partner with ACWA Power and co-financiers on the pioneering Tashkent Solar PV and energy storage project in Uzbekistan, the largest of its kind in Central Asia. The project is core to Uzbekistan's ambition to install 25 GW of renewables by 2030. This project can power 170,000 households and the battery storage capacity is equivalent to 8,000 electric vehicles,” shared Nandita Parshad, Managing Director of the EBRD’s Sustainable Infrastructure Group.

Marco Arcelli, Chief Executive Officer of ACWA Power, commented, “In a world that is looking for greater participation of private capital in emerging markets to support growth and decarbonisation, Uzbekistan is a case study under the vision and leadership of its government and lenders like the EBRD, DEG, Islamic Development Bank, Proparco, KfW IPEX-Bank, and Standard Chartered. The agreement today for the Tashkent Riverside project reflects the strong trust placed in ACWA Power as the private sector partner and one of the global leaders in renewables and energy storage. This trust is built on our unparalleled track record, and we look forward to the successful execution of this new project to contribute to the country’s ambitious low-carbon future.”

Uzbekistan remains the leading recipient of EBRD funding in Central Asia for the fourth consecutive year. To date, the Bank has invested around €4.7bn in 162 projects across the country, with most funds supporting private entrepreneurship.

ACWA Power's commitment to Uzbekistan includes 11.6 GW of power capacity, with over 10.1 GW for renewable energy projects, including the country's first green hydrogen initiative. This makes ACWA Power a key partner in Uzbekistan's sustainable development.

Since 2020, Saudi Arabia has been the leading investor in Uzbekistan's energy sector during its shift towards green energy. Trade, economic, and investment partnerships between the two countries have resulted in joint projects worth over $30bn.