The European Bank for Reconstruction and Development (EBRD) just announced its biggest investment yet in the country’s fledgling renewable energy sector. They’re advancing a total of €121 million ($142 million) for two projects to install solar energy and battery storage systems. This funding will help support Uzbekistan’s ambitious target of producing 25 gigawatts (GW) of solar and wind energy by 2030. It supports the nation’s goal of moving to renewable, sustainable energy sources.
ACWA Power is kicking off on two thrilling projects, ACWA Power Sazagan Solar 1 & 2. These solar projects will lie within picturesque Samarkand and Bukhara regions. Combined, they will generate around 2,300 gigawatt-hours (GWh) each year, enough to supply about 600,000 homes with electricity. With this investment, the EBRD is helping to go further than Uzbekistan’s current renewables targets, and the deal represents an important step in the Central Asian country’s energy transition.
Details of the Investment
The EBRD’s financing package is made up of two senior secured loans. ACWA Power Sazagan Solar 1 has signed a first loan of €52 million. This funding will enable construction of a 500 megawatt (MW) solar photovoltaic (PV) power plant and the installation of a 668 megawatt-hour (MWh) battery energy storage system (BESS) in the Samarkand region. The second loan of €69 million is being channeled to ACWA Power Sazagan Solar 2. This funding will support the construction of a 500 MW solar plant and 668 MWh battery energy storage system (BESS) in the Bukhara region.
These two special-purpose vehicles (SPVs) will work together to develop an integrated solar PV and BESS project. Combined, they will make for an Army strong total capacity of 1 GW. It’s this dual approach that dramatically increases the amount of solar energy produced. It further optimizes how and when that power is stored and used, addressing some of the chronic intermittency challenges often associated with solar.
Implications for Renewable Energy in Uzbekistan
While this investment is a huge step forward, it represents a real turning point. Second, it’s the first time Japanese investors have entered Uzbekistan’s renewable energy and battery energy storage sectors. The EBRD has been a vigorous enabler of this project. This reform opens the door to greater foreign investment into Uzbekistan’s burgeoning renewable sector.
This program marks an unprecedented and deeply positive global shift toward renewable energy. It speaks to how critical we acknowledge renewables are in combating climate change and improving energy security. Uzbekistan aims to diversify its energy sources and reduce its reliance on fossil fuels, making this investment crucial for the country’s sustainable development.
Future Prospects
Looking to the future, effective deployment of these pilot projects would be leading by example. This model has the potential to spur future renewable efforts across Uzbekistan and Central Asia. Combining solar power with battery storage systems increases energy security. Along with encouraging smart growth and transit-oriented development, at its core, this program seeks to create cleaner environments.