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EBRD finances major battery energy storage system project
New solar power plant and battery energy storage system to be built in Uzbekistan
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EBRD financing of $229.4 million supports major renewable energy project in Uzbekistan -
Funds to facilitate the construction of a battery energy storage system and a solar power plant -
The loan will support the integration of renewable energy into the grid
The European Bank for Reconstruction and Development (EBRD) is contributing to UzbekistanThe EBRD aims to develop up to 25 GW of solar and wind capacity by 2030 by organising a facility worth up to US$229.4 million for the development, design, construction and operation of a 500 MWh battery energy storage system (BESS) and a 200 MW solar PV power plant in the Tashkent region of the country. This is one of the largest EBRD-supported BESS projects in the economies where the Bank operates. The project’s technology will help ensure the safe and reliable connection of intermittent renewable energy to the grid.
The financing will be provided to ACWA Power Riverside Solar, a wholly owned special purpose vehicle ACWA Power (an international developer, investor, co-owner and operator of a portfolio of power generation, desalinated water production and green hydrogen plants). It will consist of an A-loan of up to USD 183.5 million (€ 169.8 million) to be syndicated to the EBRD and a B-loan of up to USD 40.5 million (€ 37.5 million) to be syndicated to commercial co-financiers. The EBRD is also mobilising concessional financing of up to € 5 million (US$ 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 German development corporation DEGthe french development agency ProparcoO Islamic Development Bank, KfW Bank IPEX It is Standard Chartered Bank.
Once completed, 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. It will further decrease Uzbekistan’s reliance on carbon-intensive thermal power generation and facilitate the country’s transition to a low-carbon economy, in line with the Global Renewable Energy and Energy Efficiency Commitment launched in COP28.
Nandita Parshad, Director General 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 key to Uzbekistan’s ambition to install 25 GW of renewable energy by 2030. This project can power 170,000 homes and the battery storage capacity is equivalent to 8,000 electric vehicles.”
Marco Arcelli, CEO of ACWA Power, said: “In a world seeking greater private equity participation in emerging markets to support growth and decarbonisation, Uzbekistan is a case study under the vision and leadership of its government and creditors such as the EBRD, DEG, Islamic Development Bank, Proparco, KfW IPEX-Bank and Standard Chartered. Today’s agreement for the Tashkent Riverside project reflects the strong confidence placed in ACWA Power as a private sector partner and a global leader in renewables and energy storage. This confidence is built on our unrivalled 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 is the top beneficiary of EBRD financing in Central Asia for the fourth consecutive year. To date, the Bank has invested around €4.7 billion in 162 projects across the country, with the majority of these funds supporting private entrepreneurship.