Uzbekistan to Gain 250 MW Solar Plant Backed by World Bank & Masdar

The World Bank, Abu Dhabi’s Masdar, and the Government of Uzbekistan have collaborated to fund a 250-megawatt solar photovoltaic plant with a 63-megawatt battery energy storage system (BESS) in Uzbekistan. This project, located in the Alat district of the Bukhara region, aims to provide clean and reliable electricity to approximately 75,000 households. It marks Central Asia’s first renewable energy initiative integrating a BESS component, enhancing the efficiency and flexibility of the power system.

The project is backed by a financial package that includes a USD 53 million loan from IFC and loans totaling USD 106 million from the Asian Development Bank (ADB), Dutch Entrepreneurial Development Bank (FMO), and Japan International Cooperation Agency (JICA). Additionally, the World Bank is providing a USD 12 million guarantee to support the government’s payment obligations. The investment package features concessional senior loans of USD 20 million each from the Canada-IFC Blended Climate Finance Program and ADB-managed LEAP fund.

The project, managed by Nur Bukhara Solar PV LLC FE, a company owned by Masdar, will involve developing, financing, building, owning, operating, and maintaining the solar plant and BESS. The electricity generated will be sold to Uzbekistan's National Electric Grid under a 25-year Power Purchase Agreement. This solar plant is expected to reduce CO2 emissions by over 327,000 metric tons annually and generate more than 585 gigawatt hours of renewable energy per year.