Masdar Secures Financing For Guzar 300MW Solar And 75MWh BESS Project In Uzbekistan

Masdar has secured more than US$225 million in financing for a major solar power plant and battery energy storage system in Uzbekistan, reinforcing long-term renewable energy cooperation between the two countries and supporting Uzbekistan’s plan to lift the share of renewables in its national power mix by 2030.

The funding package will support the 300-megawatt Guzar solar power plant and a 75-megawatt-hour battery energy storage system in Kashkadarya, with Masdar responsible for designing, building and operating the combined facility under a Public-Private Partnership agreement with JSC National Electric Grid of Uzbekistan.

The European Bank for Reconstruction and Development will supply up to US$195.5 million for the Masdar solar power plant and battery energy storage system in Uzbekistan, backed by contributions from Canada and Finland through the Special Fund for the High Impact Partnership on Climate Action and the Japan-EBRD Cooperation Fund.

The Asian Development Bank is adding US$30 million in financing, drawing on the Leading Asia’s Private Infrastructure Fund 2 and the Canadian Climate and Nature Fund for the Private Sector in Asia, while Abu Dhabi Commercial Bank has arranged hedging for the transaction supporting Masdar’s project in Uzbekistan.

The financial close was confirmed at a signing event held during Abu Dhabi Sustainability Week at the Masdar Pavilion, attended by Suhail Mohamed Al Mazrouei, Jamshid Khodjaev, Jurabek Mirzamahmudov and Mohamed Jameel Al Ramahi, with Masdar COO Abdulaziz Alobaidli signing alongside representatives of the EBRD, ADB and Abu Dhabi Commercial Bank.

Under the Public-Private Partnership terms, once the Guzar solar power plant and the battery energy storage system in Uzbekistan are operational, Masdar expects the facility to avoid more than 400,000 tonnes of carbon dioxide every year and generate electricity equivalent to the needs of around 60,000 homes, supporting Uzbekistan’s target to obtain 54 percent of power from renewables by 2030.

Al Ramahi said, "We are delighted to have achieved financial close on another significant renewable energy project in Uzbekistan. Since 2021, Masdar has been proud to collaborate with our partners in Uzbekistan to deliver over 2 gigawatts (GW) of renewables capacity to support the country’s ambitious clean energy goals.Uzbekistan’s abundant wind and solar resources, allied to its supportive regulatory regime, make this an attractive market for Masdar as we pursue our ambitious growth strategy to reach 100GW global capacity by 2030."

Masdar’s total investment in Uzbekistan already exceeds US$2 billion, including the 100MW Nur Navoi project, which was the first utility-scale solar power plant in the country, and the company continues expanding its presence through additional solar and battery energy storage system developments across several regions.

In November, Masdar signed a Battery Storage Services Agreement with JSC Uzenergosotish to deliver Uzbekistan’s largest standalone battery energy storage system, rated at 300MW/600MWh in the Navoi Region, while the wider Commonwealth of Independent States remains a strategic area as Masdar aims for 100GW of global capacity by 2030, building on projects in Azerbaijan, Kazakhstan and neighbouring markets.

The new Guzar solar power plant and battery energy storage system financing in Uzbekistan therefore strengthens existing clean energy links between Abu Dhabi and Central Asia, expands Masdar’s regional footprint and adds another large-scale project to Uzbekistan’s renewable portfolio, aligned with stated national climate goals and international climate-focused funding initiatives.

With inputs from WAM