TASHKENT, Uzbekistan, February 3. The European Bank for Reconstruction and Development (EBRD) will provide a long-term senior loan of up to $75 million for a solar and battery storage project in Uzbekistan's Samarkand and Bukhara regions, the bank told Trend.
The loan will be allocated to support the development, design, construction, and operation of a 500 MW solar photovoltaic power plant and a 500 MWh battery energy storage system (BESS). The project will also include interconnection facilities.
The borrower for the project is ACWA Power Sazagan Solar 2 LLC, a special-purpose vehicle established in Uzbekistan. The project is being developed by ACWA Power, which will act as the sponsor, while Sumitomo Corporation will serve as a co-sponsor. With a total project cost of $990 million, the initiative aims to significantly expand Uzbekistan’s renewable energy capacity. The introduction of battery storage will enhance the reliability of solar power generation, addressing intermittency challenges and enabling a more stable power supply.
Furthermore, the 500 MW solar plant and 500 MWh BESS will strengthen Uzbekistan's energy sector by increasing renewable energy generation capacity, improving grid stability through battery storage, making solar energy more reliable, and reducing reliance on thermal power while supporting the country’s transition to a low-carbon economy.
Meanwhile, the current loan portfolio of the EBRD projects in Uzbekistan has totaled 3 billion euros as of November 30, 2024. In particular, the loan portfolio of the EBRD is quantitatively assessed for the execution of 99 distinct initiatives.