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Green technology

Landmark Financing Package for Solar Power Plants in Uzbekistan Signed by Asian Development Bank

Strategic Insights

— 2 min read

The Asian Development Bank (ADB) has signed a landmark financing package with ACWA Power Company, Sumitomo Corporation, Chubu Electric Power Co. Inc., and Shikoku Electric Power Co. Inc. to build two utility-scale solar power plants with battery energy storage systems (BESS) in Uzbekistan. The Samarkand 1 and 2 Solar PV and BESS Projects will add 1,000 megawatts (MW) of solar capacity and about 1,336 megawatt-hours (MWh) of BESS, supplying clean electricity to around 600,000 households and offsetting about 1.3 million tons of carbon dioxide emissions annually. The projects will also include transmission lines and two new substations to strengthen grid stability and connectivity.

Key Takeaways:

  • The Asian Development Bank (ADB) has signed a $140 million financing package for the Samarkand 1 and 2 Solar PV and BESS Projects in Uzbekistan.
  • The projects will add 1,000 MW of solar capacity and 1,336 MWh of BESS, providing clean electricity to 600,000 households and reducing carbon dioxide emissions by 1.3 million tons annually.
  • ADB will provide up to $85 million in credit guarantees to backstop the off-taker's tariff payment obligations.
  • The guarantees, backed by the Government of Uzbekistan, are instrumental in mobilizing over $1.2 billion in total private and partner capital for the projects.
  • ADB is serving as the environmental and social coordinator for the projects, ensuring they meet the highest standards of environmental protection and community engagement.
  • The partnership marks the 30th anniversary of ADB's partnership with the Republic of Uzbekistan, with Uzbekistan receiving $14.6 billion in public sector loans, grants, and technical assistance since its membership in 1995.
  • The projects align with LEAP 2's goal of supporting sustainable private sector infrastructure projects that cut emissions, improve energy efficiency, and expand access to essential services.

Statistics:

  • $140 million: Financing package signed by ADB for the Samarkand 1 and 2 Solar PV and BESS Projects.
  • 1,000 MW: Solar capacity added to the grid through the projects.
  • 1,336 MWh: Battery energy storage system capacity added through the projects.
  • 600,000 households: Number of households expected to receive clean electricity from the projects.
  • 1.3 million tons: Carbon dioxide emissions reduced annually through the projects.
  • $85 million: Up to $85 million in credit guarantees provided by ADB to backstop the off-taker's tariff payment obligations.
  • $1.2 billion: Total private and partner capital mobilized for the projects, thanks to ADB's guarantees.
  • 30 years: Anniversary of ADB's partnership with the Republic of Uzbekistan.
  • $14.6 billion: Total public sector loans, grants, and technical assistance received by Uzbekistan since its membership in 1995.
  • 69: Number of ADB's member countries.
  • 50: Number of ADB's regional members.

Sources:

  • Asian Development Bank (ADB), "ADB, Private Sector Partners Sign $140 Million Financing Package for Solar Power Plants in Uzbekistan"
  • ADB News, "ADB, ACWA Power Company, and Partners Sign Landmark Financing Package for Solar Power Plants in Uzbekistan"
  • ADB Facts and Figures, "Uzbekistan"

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