ADB, Masdar Sign $30 Million Deal to Boost Solar Energy, BESS Capacity in Uzbekistan – EQ
In Short : The Asian Development Bank (ADB) and Abu Dhabi-based Masdar have signed a US $30 million financing agreement to support the Guzar Solar and Battery Energy Storage System (BESS) project in Uzbekistan’s Kashkadarya region. The deal, part of a larger US $225 million renewable energy package, will expand a 300 MW solar plant with a 75 MWh storage system, generating clean power, reducing emissions, and strengthening the nation’s energy transition.
In Detail : TASHKENT, UZBEKISTAN — The Asian Development Bank (ADB) and Abu Dhabi Future Energy Company Private Joint Stock Company (Masdar) have signed a $30 million financing package to develop a 300-megawatt solar power plant and 75-megawatt-hour battery energy storage system (BESS) in Guzar City, Kashkadarya Region, Uzbekistan.
The Guzar Solar and Battery Energy Storage Project will increase Uzbekistan’s renewable energy capacity and advance its transition to a low-carbon economy. The project also includes the construction of electrical interconnection facilities—1.6 kilometers of transmission lines and a 220-kilovolt substation—to help integrate renewable energy into the national power grid.
The financing comprises 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). Both funds are administered by ADB.
“This project demonstrates ADB’s strong commitment to supporting clean energy transition across Asia and the Pacific, and specifically Uzbekistan’s path toward energy security,” said ADB Country Director for Uzbekistan Kanokpan Lao-Araya. “By combining large-scale solar generation with BESS, the project will help meet growing electricity demand, improve power reliability, reduce greenhouse gas emissions, and support Uzbekistan’s commitment to a more sustainable future.”
Once operational, the project is expected to increase the country’s electricity production by 634 gigawatt-hours annually and offset at least 354,000 tons of carbon dioxide emissions, contributing to Uzbekistan’s target of achieving a 40% share of renewables in its power generation mix by 2030.
ADB provides a partial credit guarantee to Nur Kashkadarya Solar PV Foreign Enterprise LLC—the special purpose vehicle established for the project and wholly owned by Masdar. This guarantee, covering a letter of credit of up to $9 million, will help mitigate risks associated with the power offtaker’s payment obligations.
ADB and the Republic of Uzbekistan celebrate the 30th anniversary of the partnership in 2025. Since joining ADB in 1995, Uzbekistan has received public sector loans, grants, and technical assistance totaling $15.8 billion.
LEAP 2 is an ADB-managed fund with a $1.5 billion commitment from the Japan International Cooperation Agency. Established in 2023, it focuses on sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and provide affordable health care, education, and communication services to ADB’s developing member countries.
Established in 2024, CANPA is a trust fund managed by ADB, supported by a commitment of Can$360 million from the Government of Canada. The fund builds on the success of the two previous funds, namely the Canadian Climate Fund for the Private Sector in Asia II (CFPS II) and its predecessor CFPS. CANPA aims to support private-sector projects in Asia and the Pacific that focus on climate and nature-based solutions, while also promoting gender equality.
Masdar is a global clean energy company headquartered in the United Arab Emirates. At the end of 2025, Masdar’s total gross generation capacity (operational and under development) exceeded 50 gigawatts (GW) from renewable energy projects globally, with the goal of increasing this capacity to 100 GW by 2030. ADB has financed nine Masdar projects, six of which are in Uzbekistan.
ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
