Image courtesy: https://www.adb.org/

The Asian Development Bank (ADB) and Masdar have signed a $30 million financing agreement to develop a large-scale solar and battery storage project in Uzbekistan, reinforcing the country’s push toward energy security and low-carbon power generation.

The financing will support the Guzar Solar and Battery Energy Storage Project in Guzar City, located in the Kashkadarya Region. The project combines a 300-megawatt solar photovoltaic plant with a 75-megawatt-hour battery energy storage system (BESS), alongside new grid infrastructure to ensure reliable integration of renewable power into Uzbekistan’s national electricity system.

Strengthening Renewable Capacity and Grid Stability

Beyond generation assets, the project includes the construction of 1.6 kilometers of transmission lines and a 220-kilovolt substation. These upgrades are designed to strengthen grid connectivity and improve the system’s ability to absorb intermittent renewable energy, addressing one of the key challenges facing rapid solar deployment.

Once operational, the facility is expected to generate around 634 gigawatt-hours of electricity annually and reduce carbon dioxide emissions by at least 354,000 tonnes per year. The output will directly contribute to Uzbekistan’s national target of sourcing 40 percent of its electricity from renewables by 2030.

Read more: ALTÉRRA and BBVA Plan $1.2 Billion Climate Co-Investment Fund to Scale Global Climate Finance

Blended Finance Structure

The $30 million package is structured through a mix of ADB-administered funds. It includes a $12.5 million loan from ADB, a $12.5 million loan from the Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), and a $5 million loan from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA). The blended structure is designed to mobilize private capital while reducing project risk.

ADB is also providing a partial credit guarantee of up to $9 million to Nur Kashkadarya Solar PV Foreign Enterprise LLC, the project’s special purpose vehicle wholly owned by Masdar. The guarantee supports a letter of credit and helps mitigate payment risk linked to the project’s power offtaker.

Uzbekistan’s Energy Transition Path

According to ADB’s Country Director for Uzbekistan, Kanokpan Lao-Araya, the project reflects ADB’s long-term commitment to supporting clean energy transitions across Asia and the Pacific, while strengthening Uzbekistan’s energy security. The integration of battery storage alongside solar generation is expected to improve power reliability, reduce emissions, and help meet rising electricity demand.

Uzbekistan joined ADB in 1995 and, over three decades of partnership, has received $15.8 billion in loans, grants, and technical assistance. Clean energy and grid modernization have become increasingly central to this collaboration as the country seeks to balance economic growth with climate goals.

Explore OneStop ESG Marketplace: Solar energy

Masdar’s Expanding Regional Footprint

Masdar, headquartered in the United Arab Emirates, continues to expand its renewable energy presence in Central Asia. By the end of 2025, the company’s global renewable energy portfolio exceeded 50 gigawatts of operational and under-development capacity, with a target of reaching 100 gigawatts by 2030. ADB has financed nine Masdar projects to date, six of them in Uzbekistan, underscoring the strategic importance of the country in Masdar’s regional growth plans.

Together, the Guzar project signals how multilateral development finance, blended funding structures, and private-sector expertise are converging to accelerate renewable energy deployment in emerging markets, while strengthening grid resilience and long-term energy security.

Source: https://www.adb.org/

Explore ESG Solutions on our marketplace - OneStop ESG Marketplace.

Keep abreast of the top ESG Events on OneStop ESG Events.

OneStop ESG Educate: Your go-to source for top ESG courses and training programs tailored to your needs.

Stay informed with the latest insights on OneStop ESG News.

Discover meaningful career opportunities on OneStop ESG Jobs.