ACWA Power, a leading global player in renewable energy and desalination solutions, has finalized financing arrangements totaling $533mn for the Tashkent Riverside project in Uzbekistan.
This initiative includes the development of a 200MW solar photovoltaic (PV) plant alongside Central Asia's largest battery energy storage system (BESS), boasting a capacity of 500MWh. These installations are set to bolster Uzbekistan's energy infrastructure, supporting its transition towards sustainable and renewable sources.
The financing, secured through a consortium of international lenders, stresses the project's strategic importance and ACWA Power's pivotal role in advancing Uzbekistan's renewable energy ambitions.
Key financial partners include the European Bank for Reconstruction and Development (EBRD), Islamic Development Bank (IsDB), DEG, Proparco, Standard Chartered, and KfW-IPEX Bank. Collectively, these institutions have committed $386mn in debt financing, marking a substantial endorsement of ACWA Power's expertise and track record in renewable energy development.
Marco Arcelli, CEO of ACWA Power, emphasized the importance of private sector involvement in supporting Uzbekistan's growth and decarbonization goals. He highlighted the project's alignment with Uzbekistan's vision for a low-carbon future, driven by the government's proactive policies and supportive regulatory framework.
Nandita Parshad, Managing Director of EBRD's Sustainable Infrastructure Group, praised the Tashkent Riverside project as a pioneering effort in Central Asia's renewable energy landscape. She noted its potential to generate electricity for approximately 170,000 households and its critical role in mitigating the intermittency challenges associated with renewable power generation through advanced energy storage solutions.
The BESS component of the project will play a crucial role in stabilizing Uzbekistan's electricity grid, ensuring reliable power supply by storing excess energy during peak production periods for use during times of lower generation. This capability is vital as Uzbekistan aims to derive 40% of its electricity from renewable sources by 2030, part of a broader strategy to diversify its energy mix and enhance energy security.
ACWA Power's extensive commitment to Uzbekistan includes a diverse portfolio totaling 11.6 GW of power capacity, with over 10.1 GW dedicated to renewable energy projects. This includes the country's first green hydrogen initiative, reinforcing ACWA Power's status as a key partner in Uzbekistan's sustainable development journey.
Since 2020, Saudi Arabia has become the leading investor in Uzbekistan's energy sector, especially amid Uzbekistan's shift towards green energy. Extensive trade, economic, and investment partnerships between the two countries have resulted in a portfolio of joint projects exceeding $30bn.
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