Masdar achieves financial close for 300MW solar project in Uzbekistan

Abu Dhabi Future Energy Company PJSC – Masdar, a global clean energy leader, today announced it has reached financial close on a package worth more than US$225 million for the Guzar 300-megawatt (MW) solar power plant and 75-megawatt-hour (MWh) battery energy storage system (BESS) in Kashkadarya, Uzbekistan.

The European Bank for Reconstruction and Development (EBRD) will provide up to US$195.5 million, including financing from Canada and Finland under the Special Fund for the High Impact Partnership on Climate Action (HIPCA), and the Japan-EBRD Cooperation Fund.

The Asian Development Bank (ADB) is providing financing of US$30 million, including from the Leading Asia’s Private Infrastructure Fund 2 (LEAP 2) and the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA) under its administration. Abu Dhabi Commercial Bank provided hedging on the transaction.

The financial close was marked by a signing ceremony held in the presence of Suhail Mohamed Al Mazrouei, Minister of Energy and Infrastructure; Jamshid Khodjaev, Deputy Prime Minister of Uzbekistan; Jurabek Mirzamahmudov, Minister of Energy of Uzbekistan; and Mohamed Jameel Al Ramahi, CEO, Masdar, at the Masdar Pavilion during Abu Dhabi Sustainability Week. Masdar COO Abdulaziz Alobaidli signed the agreement, alongside representatives of the EBRD, ADB and ADCB.

Al Ramahi said, “We are delighted to have achieved financial close on another significant renewable energy project in Uzbekistan. Since 2021, Masdar has been proud to collaborate with our partners in Uzbekistan to deliver over 2 gigawatts (GW) of renewables capacity to support the country’s ambitious clean energy goals.

Uzbekistan’s abundant wind and solar resources, allied to its supportive regulatory regime, make this an attractive market for Masdar as we pursue our ambitious growth strategy to reach 100GW global capacity by 2030.”

Masdar will design, build, and operate the solar and BESS project under the terms of the Public-Private Partnership agreement it signed with JSC National Electric Grid of Uzbekistan. Once operational, the project will avoid more than 400,000 tonnes of carbon dioxide annually and provide enough electricity to power the equivalent of 60,000 homes, contributing to Uzbekistan’s target of generating 54 percent of power from renewables by 2030.

Masdar’s investment to date in Uzbekistan exceeds US$2 billion, having developed the first utility-scale solar project in the country, the 100MW Nur Navoi plant. Most recently, Masdar signed a Battery Storage Services Agreement with JSC Uzenergosotish last November to develop the nation’s largest standalone BESS project, with a capacity of 300MW/600MWh in the Navoi Region of Uzbekistan.

The CIS region is a strategic market for Masdar as it targets a global portfolio capacity of 100GW by 2030. Beyond its footprint in Uzbekistan, the company has an active presence across Azerbaijan, Kazakhstan, and elsewhere.

WAM