The Asian Development Bank (ADB) and Abu Dhabi Future Energy Company (Masdar) have signed a $30 million financing package to develop a 300-megawatt solar power plant and a 75-megawatt-hour battery energy storage system in Guzar City, Kashkadarya Region, Uzbekistan. The project will also include 1.6 kilometers of transmission lines and a 220-kilovolt substation to integrate the renewable energy into the national grid, supporting Uzbekistan’s transition to a low-carbon economy.
The financing consists of a $12.5 million loan from ADB, a $12.5 million loan from the Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), and a $5 million loan from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA), all administered by ADB. This collaboration underscores ADB’s commitment to supporting clean energy and enhancing Uzbekistan’s energy security, combining large-scale solar generation with battery storage to meet growing electricity demand, improve reliability, and reduce greenhouse gas emissions.
Once operational, the project is expected to generate 634 gigawatt-hours of electricity annually and offset at least 354,000 tons of carbon dioxide emissions, contributing to Uzbekistan’s goal of achieving 40% renewable energy in its power mix by 2030. ADB is providing a partial credit guarantee of up to $9 million to Nur Kashkadarya Solar PV Foreign Enterprise LLC, Masdar’s special purpose vehicle for the project, mitigating risks linked to the power offtaker’s payment obligations.
Since joining ADB in 1995, Uzbekistan has received public sector loans, grants, and technical assistance totaling $15.8 billion, marking 30 years of partnership celebrated in 2025. LEAP 2, managed by ADB with $1.5 billion from the Japan International Cooperation Agency, focuses on sustainable private sector infrastructure projects that reduce carbon emissions and enhance access to energy, healthcare, education, and communication. CANPA, established in 2024 with Can$360 million from the Government of Canada, supports private-sector climate and nature-based projects while promoting gender equality.
Masdar, a UAE-based global clean energy company, had over 50 gigawatts of renewable energy capacity by the end of 2025, aiming to reach 100 gigawatts by 2030. ADB has financed nine Masdar projects, six of which are in Uzbekistan. The Guzar Solar and BESS project exemplifies how ADB leverages innovative financing, strategic partnerships, and private sector expertise to advance sustainable energy, build resilient infrastructure, and support inclusive growth across Asia and the Pacific.
