ADB, Masdar Sign Deal to Build Region’s First Solar Power Plant with Battery Energy Storage Facility in Uzbekistan

TASHKENT, UZBEKISTAN (21 May 2024) — The Asian Development Bank (ADB) and Abu Dhabi Future Energy Company PJSC (Masdar) signed a $46.5 million loan to build the Nur Bukhara greenfield solar power plant and battery energy storage (BESS) facility in Uzbekistan’s Bukhara region. This milestone project is Central Asia’s first renewable power facility with a utility-scale battery storage system.

The financing package includes $26.5 million from ADB’s ordinary capital resources and $20 million from the Leading Asia’s Private Infrastructure Fund administered by ADB. ADB further mobilized $26.5 million from the Japan International Cooperation Agency. The International Finance Corporation together with the Canada–IFC Blended Climate Finance Program and the Dutch Entrepreneurial Development Bank are parallel lenders.

Uzbekistan is at the forefront of promoting renewable energy in the region, aiming to generate a quarter of its power from clean energy sources by 2030. The facility will be able to generate 250 megawatts and store 126 megawatt-hours of energy. The financing will also support the construction of a 20-kilovolt substation and a 3.1-kilometer transmission line to connect to the grid.

"ADB is committed to delivering bespoke climate financing solutions that local commercial banks cannot readily provide.” said ADB Director General for Private Sector Operations Suzanne Gaboury. "By filling crucial market gaps this way, ADB is helping Uzbekistan achieve its clean energy goals and projects like Nur Bukhara set a strong precedent that can be replicated across Central Asia.”

Nur Bukhara will use bifacial solar photovoltaic modules featuring single-axis tracking to enhance energy generation and reduce the cost per kilowatt-hour. The power plant will deliver 555 gigawatt-hours of clean energy per year, powering 55,000 households. The BESS will enable electricity to be stored and delivered on demand, reducing grid instability, and providing the flexibility to integrate intermittent solar resources. Power generated will be sold exclusively to the National Electric Grid of Uzbekistan.

"Masdar is proud to be a key partner in Uzbekistan's clean energy journey. We are strong supporters of the country’s ambitious renewable energy targets, alongside key partners including ADB. Projects like Nur Bukhara will enhance the affordability and accessibility of reliable, clean energy for all Uzbek citizens and drive private sector growth," said Masdar Director of Corporate Finance and Treasury Bruce Johnson. "This project would not have been possible without the commitment of the Government of Uzbekistan, the support of ADB, and our other financial partners."

Masdar is one of the world’s fastest-growing renewable energy companies. As a global clean energy pioneer, Masdar has developed and invested in projects in over 40 countries with a combined capacity of over 20 gigawatts and is targeting a renewable energy portfolio capacity of 100 gigawatts by 2030. ADB and Masdar have partnered on renewable power projects since 2020.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.