ADB-Led $1.2 Billion Solar-BESS Deal to Power 600,000 Homes in Uzbekistan

In a transformative move toward Central Asia's green energy future, the Asian Development Bank (ADB) has spearheaded a landmark $1.2 billion financing package to develop two major utility-scale solar photovoltaic (PV) plants equipped with battery energy storage systems (BESS) in Uzbekistan. These projects, titled Samarkand 1 and 2, will be located in the Samarkand and Bukhara regions and are set to be among the largest solar-plus-storage installations in the region.

Pioneering Clean Energy in Central Asia

The Samarkand 1 and 2 Solar PV and BESS Projects will collectively generate 1,000 megawatts (MW) of solar power and provide 1,336 megawatt-hours (MWh) of battery storage capacity. Once operational, the installations are projected to deliver clean, stable electricity to over 600,000 households, while offsetting approximately 1.3 million tons of carbon dioxide emissions annually.

ADB President Masato Kanda highlighted the project's regional importance, stating:

"ADB is pleased to support Uzbekistan in advancing one of the most significant renewable energy initiatives in Central Asia. These solar and battery plants demonstrate the power of partnership and innovation, delivering reliable, affordable, and sustainable energy while cutting emissions."

Massive Infrastructure Push

The Samarkand projects will not only introduce solar generation and storage, but also include essential grid infrastructure:

• New transmission lines

• Two substations to enhance grid stability and interconnectivity

This ensures the projects contribute to both energy generation and distribution resilience, supporting Uzbekistan's goals for a more sustainable and secure electricity grid.

Robust and Innovative Financing Structure

The financing package arranged by ADB totals $140 million, comprising:

• $70 million from ADB's own capital

• $10 million from the Leading Asia's Private Infrastructure Fund 2 (LEAP 2), administered by ADB and backed by Japan International Cooperation Agency (JICA)

• $60 million in syndicated loans from private financiers, with ADB acting as the lender of record

ADB is also providing up to $85 million in credit guarantees, backstopping tariff payment obligations of the project's off-taker. These guarantees, supported by the Government of Uzbekistan, significantly reduced investor risk and were instrumental in mobilizing the $1.2 billion total capital investment from global private and institutional partners.

Global Collaboration for Regional Impact

In addition to core private developers—ACWA Power (Saudi Arabia), Sumitomo Corporation, Chubu Electric Power Co. Inc., and Shikoku Electric Power Co. Inc.—the project financing includes a formidable lineup of international public and private institutions:

Multilateral Development Banks:

• European Bank for Reconstruction and Development (EBRD)

• Islamic Development Bank (IsDB)

• Japan Bank for International Cooperation (JBIC)

Commercial Banks (under Japan's NEXI cover):

• Standard Chartered Bank

• The Norinchukin Bank

• Sumitomo Mitsui Banking Corporation

• KfW IPEX-Bank GmbH

This multi-actor framework demonstrates how climate finance, risk mitigation tools, and technical collaboration can accelerate energy transition in emerging economies.

Environmental and Social Commitment

ADB is not only leading the financing but also serving as the environmental and social coordinator for the projects. This role involves:

• Ensuring compliance with international environmental safeguards

• Conducting community engagement programs

• Monitoring social inclusion and local development benefits

The projects are expected to serve as models for sustainable infrastructure investment, integrating social responsibility with technological innovation.

A Milestone in ADB-Uzbekistan Partnership

The announcement coincides with the 30th anniversary of Uzbekistan's membership in ADB. Since joining in 1995, Uzbekistan has received over $14.6 billion in ADB support across public sector loans, grants, and technical assistance. This solar-BESS initiative marks a high point in the partnership, showcasing a shared commitment to decarbonization, inclusive development, and regional cooperation.

LEAP 2: A Catalytic Fund for Sustainable Infrastructure

The LEAP 2 fund, a $1.5 billion initiative by JICA and managed by ADB, is designed to support private sector-led infrastructure that improves energy efficiency, reduces carbon emissions, and expands access to essential services across Asia. Its participation in the Uzbekistan solar-BESS project exemplifies its mission to unlock bankable, high-impact solutions in developing economies.

By uniting public and private capital, pioneering risk mitigation mechanisms, and aligning with global climate goals, the Samarkand 1 and 2 solar projects represent a new era for clean energy in Central Asia. ADB's leadership, backed by trusted global partners, is not only lighting up Uzbekistan's grid but also paving the way for a resilient, low-carbon future for the region.