The Asian Development Bank (ADB) and Masdar have finalized a $30 million financing agreement to support the development of a 300 MW solar power plant paired with a 75 MWh battery energy storage system in Guzar City, Kashkadarya Region, Uzbekistan.
This initiative will enhance the country’s renewable energy infrastructure while facilitating grid integration through 1.6 km of transmission lines and a new 220 kV substation, ADB said.
Financing Breakdown and Project Scope
The funding package includes a $12.5 million loan directly from ADB, matched by an equal amount from the ADB-administered 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). Both LEAP 2 and CANPA are managed by ADB to channel private investment into sustainable infrastructure. ADB also extends a partial credit guarantee of up to $9 million to Nur Kashkadarya Solar PV Foreign Enterprise LLC, Masdar’s special purpose vehicle, to cover offtaker payment risks.
ADB Country Director for Uzbekistan, Kanokpan Lao-Araya, emphasised the project’s role in addressing rising electricity needs through combined solar generation and storage, which will improve reliability, cut emissions, and align with national sustainability goals. Once complete, the facility aims to generate 634 GWh annually, offsetting over 354,000 tons of CO2 emissions and supporting Uzbekistan’s target of 40% renewable energy in its power mix by 2030.
Strategic Partnerships and Developer Profile
LEAP 2, launched in 2023 with $1.5 billion from Japan’s JICA, targets carbon-reducing infrastructure in developing ADB members, while CANPA—backed by Canada’s Can$360 million commitment since 2024—prioritizes climate and nature-based private sector initiatives with a gender lens. Masdar, UAE-based with over 50 GW in global renewable capacity as of late 2025, drives the project; ADB has backed nine of its ventures, six in Uzbekistan alone, as the two mark 30 years of partnership in 2025 with $15.8 billion in total support.
This collaboration underscores ADB’s broader mission since 1966 to foster resilient growth across 69 member countries through innovative financing and public-private ties, positioning Uzbekistan as a regional leader in hybrid clean energy deployment.
