TASHKENT, Uzbekistan, January 19. Asian Development Bank (ADB) and Masdar have signed a $30 million financing package to support the development of a 300-megawatt solar power plant with a 75-megawatt-hour battery energy storage system (BESS) in Uzbekistan’s Kashkadarya region, Trend reports via the company.
The project encompasses the development of electrical interconnection infrastructure, which includes the construction of 1.6 kilometers of transmission lines and a 220-kilovolt substation, with the primary objective of facilitating the integration of renewable energy into Uzbekistan’s national power grid.
The financing for the initiative is structured through a combination of loans: $12.5 million from the Asian Development Bank (ADB), another $12.5 million from the Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), and a $5 million loan from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA), all of which are administered by ADB.
Upon completion, the project is projected to generate 634 gigawatt-hours of electricity annually, while simultaneously reducing carbon dioxide emissions by a minimum of 354,000 tons. This supports Uzbekistan’s commitment to increasing the share of renewable energy in its total power generation to 40% by 2030.
Additionally, ADB will extend a partial credit guarantee to Nur Kashkadarya Solar PV Foreign Enterprise LLC, the special purpose vehicle wholly owned by Masdar. This guarantee, which covers a letter of credit of up to $9 million, aims to mitigate risks associated with the payment obligations of the power offtaker.
Meanwhile, ADB and the Republic of Uzbekistan mark 30 years of partnership in 2025. Since joining the bank in 1995, Uzbekistan has received $15.8 billion in public sector loans, grants, and technical assistance from ADB.
Earlier, the European Bank for Reconstruction and Development (EBRD) approved financing of up to $195.5 million for the construction of a 300-MW solar power plant with a 75-MWh battery energy storage system in Uzbekistan’s Kashkadarya region, further strengthening international support for the project.