EBRD finances major battery energy storage project

A new solar power plant and battery energy storage system will be built in Uzbekistan

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  EBRD financing of $229.4 million supports major renewable energy project in Uzbekistan
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  Funds to facilitate the construction of a battery energy storage system and a solar power plant
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  The loan will support the integration of renewable energy sources into the grid

The European Bank for Reconstruction and Development (EBRD) is contributing to Uzbekistan’s goal of developing up to 25 GW of solar and wind capacity by 2030 by providing a facility worth up to $229.4 million for the development, design, construction and operation of a 500 MWh battery energy storage system (BESS) and a 200 MW photovoltaic power plant in the Tashkent region. This is one of the largest BESS projects supported by the EBRD in the economies where the Bank operates. The project’s technology will help ensure the safe and reliable connection of intermittent renewable energy sources to the power grid.

The financing will be provided to ACWA Power Riverside Solar, a wholly owned special purpose vehicle of ACWA Power (an international developer, investor, co-owner and operator of a portfolio of power plants, desalinated water plants and green hydrogen plants). It will consist of a Loan A facility of up to USD 183.5 million (EUR 169.8 million) to the EBRD account and a Loan B facility of up to USD 40.5 million (EUR 37.5 million) to be provided to commercial co-financiers. The EBRD is also mobilising concessional financing of up to EUR 5 million (US$ 5.4 million) from Finland under the EBRD High Impact Partnership for Climate Action (HIPCA).

Parallel loans for the project will be provided by the German development corporation DEG, the French development agency Proparco, the Islamic Development Bank, KfW IPEX-Bank and Standard Chartered Bank.

Once completed, the solar power plant project is expected to generate up to 418 GWh of electricity per year and reduce annual CO2 emissions by more than 230,000 tons. This will further reduce Uzbekistan’s reliance on high-emission thermal energy production and facilitate the country’s transition to a low-carbon economy, in line with the Global Renewables and Energy Efficiency Pledge announced at COP28.

Nandita Parshad, Managing Director of the EBRD Sustainable Infrastructure Group, said: “We are proud to be working 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. This project is key to Uzbekistan’s ambition to install 25GW of renewable energy by 2030. This project has the potential to power 170,000 homes and has the battery storage capacity equivalent to 8,000 electric vehicles.”

Marco Arcelli, CEO of ACWA Power, said: “In a world looking to more 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 such as EBRD, DEG, Islamic Development Bank, Proparco, KfW IPEX-Bank and Standard Chartered. Today’s agreement for the Tashkent Riverside project reflects the strong confidence in ACWA Power as a private sector partner and one of the world leaders in renewables and energy storage. This confidence is based on our unprecedented experience and we look forward to the successful execution of this new project, which will contribute to the country’s ambitious low carbon future.”

Uzbekistan has been the leading recipient of EBRD financing in Central Asia for the fourth year running. The Bank has invested some €4.7 billion in 162 projects across the country to date, with the majority of this funding supporting private enterprise.