The Asian Development Bank (ADB) and Abu Dhabi Future Energy Company Masdar signed a $46.5 mn loan agreement to construct the Nur-Bukhara solar power plant and a battery energy storage facility in Uzbekistan's Bukhara region. This project is Central Asia's first renewable energy facility with a utility-scale battery energy storage system.
The financing package includes $26.5 mn from ADB's regular capital resources and $20 mn from the ADB-managed Asia Leading Private Infrastructure Fund. Additionally, ADB mobilized an extra $26.5 mn from the Japan International Cooperation Agency. The International Finance Corporation (IFC), along with Canada-IFC Blended Climate Finance Program and the Dutch Enterprise Development Bank, are parallel lenders.
Uzbekistan aims to generate 25% of its electricity from clean sources by 2030. The Nur-Bukhara facility is expected to generate 250 MW and store 126 MW hours of energy. The project includes constructing a 20-kilovolt substation and a 3.1-kilometre transmission line to connect to the national grid.
The Nur-Bukhara plant will use double-sided, single-axis tracking solar PV modules to increase power generation and reduce costs per kilowatt hour. The plant will produce 555 GW hours of clean energy annually, sufficient to power 55,000 households. The Accumulative Energy Storage System (AES) will enable on-demand electricity storage and delivery, reducing grid instability and integrating intermittent solar resources. The electricity generated will be sold exclusively to the National Electric Grid of Uzbekistan.
Masdar developed and invested in projects in over 40 countries with a more than 20 GW capacity. The company plans to expand its renewable energy portfolio to 100 GW by 2030. ADB and Masdar have collaborated on renewable energy projects since 2020.
ADB aims to achieve a prosperous, inclusive, stable, and sustainable Asia and the Pacific while continuing efforts to eradicate extreme poverty. Founded in 1966, ADB has 68 member countries, 49 of which are in the region.
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