EBRD provides $229.4m for 500MWh Uzbek BESS and 200MW solar plant

July 4, 2024

The European Bank for Reconstruction and Development (EBRD) is to provide financing totalling $229.4 million for the development, design, construction and operation of a 500MWh battery energy storage system (BESS) and a 200 MW solar photovoltaic power plant in Uzbekistan’s Tashkent region.

The financing will be provided to ACWA Power Riverside Solar, a special purpose company fully owned by ACWA Power.

It will consist of an A-loan of up to $183.5 million (€169.8 million) for the EBRD’s account and a B-loan of up to US$ 40.5 million (€37.5 million) to be syndicated to commercial co-financiers.

The EBRD is also mobilising concessional finance of up to €5 million (US$ 5.4 million) from Finland under the EBRD’s High Impact Partnership on 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 finished, the solar power project is expected to generate up to 418 GWh of electricity per year and reduce annual CO2 emissions by more than 230,000 tonnes.

Nandita Parshad, managing director of the EBRD’s Sustainable Infrastructure Group, said: “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.”

Marco Arcelli, CEO of ACWA Power, added: “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.”