The European Bank for Reconstruction and Development (EBRD) is reviewing a proposal to provide $145 million in loans for two large-scale solar power projects in Uzbekistan. These projects, developed by ACWA Power, will include a total of 1,000 megawatts (MW) of solar energy capacity along with 1,000 megawatt-hours (MWh) of battery storage.
If approved, the loans will support ACWA Power’s subsidiary in building the Sazagan 1 and Sazagan 2 projects in Samarkand. Each site will include 500 MW of solar photovoltaic (PV) capacity and a 500 MWh battery energy storage system (BESS). The total cost of the projects is estimated at $770 million for Sazagan 1 and $990 million for Sazagan 2. ACWA Power will sponsor the projects, while Japan’s Sumitomo Corporation will co-sponsor.
In 2024, ACWA Power and Sumitomo signed an agreement to develop 2.5 GW of renewable energy projects in Uzbekistan. These projects include 968 MW of battery storage and represent an investment of $4.2 billion.
Uzbekistan has been expanding its renewable energy sector. The country has set a target to generate 25% of its electricity from renewables by 2030. Several projects are underway, including the 1,500 MW Nur Navoi Solar Power Project and the 500 MW Jizzakh Wind Power Plant.
Other renewable energy projects in Uzbekistan include the 220 MW Sherabad Solar Plant and the 457 MW Bash Solar Plant. In 2023, the government signed agreements for additional solar and wind power projects with international developers.
Battery storage is being introduced to stabilize the grid and integrate renewable energy. The planned battery systems in Samarkand will store excess solar power and release it when demand is high. Uzbekistan continues to attract foreign investment in renewable energy. The country has been working with international banks and private companies to develop solar, wind, and hydroelectric projects.
