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uzbekistan proparco acwa power renewable energy
Proparco, alongside EBRD, KfW, DEG, IsDB and Standard Chartered Bank, participates in the financing of the Tashkent project, a 200MW solar plant and a large-scale 500MWh Battery Energy Storage (BESS), developed by ACWA Power in Uzbekistan, by providing USD 50m. This is the fifth renewable energy project financed by Proparco in the country since 2021.

After a first solar PV plant financing in 2021 (the Tutly project), two wind farms in 2022 (the Bash and Dzhankeldy projects) and in 2023 (the Nukus project), Proparco continues to support the Uzbek renewable energy sector, as part of broader strategic support of the AFD group for the Uzbek energy transition. Indeed, electricity production in Uzbekistan is largely generated by thermal power plants, mainly gas- and coal-fired. The electricity sector is the second largest emitting sector of greenhouse gases (GHG) in the country. Diversification of the electricity mix is therefore a major challenge of a low carbon trajectory.

The Tashkent project consists in the construction and operation of a 200MW solar plant and a large-scale 500MWh battery, both located around 20 km northeast of Tashkent, the capital of Uzbekistan. The owner of the project is ACWA Power, a well-known client of Proparco, highly active in Uzbekistan where it has developed several large power projects, including Bash, Dzhankeldy and Nukus. The solar plant will inject electricity to the grid at the point of interconnection and the battery will charge from and reinject directly to the grid.

The project will make a significant contribution towards the country’s objective of 27 GW of renewable energy capacity and 40% of electricity production from renewables by 2030. Therefore, the solar plant and the BESS will both contribute directly to this goal by way of the 200MW additional solar plant and indirectly with the storage part of the project, which will reinforce grid stability and renewable energy penetration in the country. Indeed, utility-scale batteries are instrumental in the diversification and decarbonization of Uzbekistan’s electricity generation mix.

"Proparco is proud to support the Tashkent project which contributes to the energy transition in Uzbekistan. This landmark project is strongly innovative, with the development of the country’s largest Battery Energy Storage System, and will boost grid stability and renewable energy penetration. Supporting innovations that have a positive impact for our planet is at the core of our mandate and strategy." said Françoise Lombard, CEO of Proparco.

“In a world that is looking for greater participation of private capital in emerging markets to support growth and decarbonization, Uzbekistan is a case study under the vision and leadership of its Government and lenders like EBRD, DEG, Islamic Development Bank, Proparco, KfW IPEX and Standard Chartered. The agreement today for the Tashkent Riverside project reflects the strong trust placed in ACWA Power as the private sector partner, and one of the global leaders in renewables and energy storage. This trust is built on our unparalleled track record and we look forward to the successful execution of this new project to contribute to the country’s ambitious low carbon future.” said Marco Arcelli, CEO of ACWA Power.