The Asian Development Bank (ADB) and Abu Dhabi Future Energy Company PJSC (Masdar) have signed a $46.5m loan for constructing a greenfield solar power plant and battery energy storage system (BESS) in the Bukhara region of Uzbekistan.
The Nur Bukhara plant will be Central Asia’s first renewable power facility with utility-scale battery storage.
Uzbekistan’s rising demand for energy due to its economy and growing population has led the government to set a goal of increasing renewable energy generation by up to 25GW – 40% of the country’s overall electricity consumption – by 2030. The new facility fits within the government’s plans.
A further $26.5m was secured from the Japan International Cooperation Agency (JICA). Has also been agreed by the International Finance Corporation, the Canada–IFC Blended Climate Finance Program, and the Dutch Entrepreneurial Development Bank.
The plant will have a capacity of 250MW and store 126MWh of energy. Additionally, it will include a 20kV substation and a 3.1km transmission line to connect to the grid. 555GWh of clean energy is expected to be delivered by the plant yearly, which will provide power for over 55,000 households.
BESS will reduce the occurrence of grid instability and provide the ability to integrate intermittent solar resources. Power generated at the Nur Bukhara facility will only be sold to the National Electric Grid of Uzbekistan.
Masdar’s Director of Corporate Finance and Treasury, Bruce Johnson, commented: “Masdar is proud to be a key partner in Uzbekistan’s clean energy journey. We are strong supporters of the country’s ambitious renewable energy targets, alongside key partners including ADB.
Projects like Nur Bukhara will enhance the affordability and accessibility of reliable, clean energy for all Uzbek citizens and drive private sector growth.”
[Image credit: The Asian Infrastructure Investment Bank (AIIB)]
