The Asian Development Bank ( ADB ) and Abu Dhabi Future Energy Company ( Masdar ) have signed a US$30 million financing package to develop a solar and battery project in Uzbekistan.

The 300-megawatt solar power plant and the 75-megawatt-hour battery energy storage system ( BESS ) will be located in Guzar City in the Kashkadarya Region.  

The Guzar Solar and Battery Energy Storage Project includes the construction of electrical interconnection facilities – 1.6 kilometres of transmission lines and a 220-kilovolt substation – to help integrate renewable energy into the national power grid.

The financing comprises a US$12.5 million loan from ADB, a US$12.5 million loan from the Leading Asia Private Infrastructure Fund ( LEAP 2 ), and a US$5 million loan from the Canadian Climate and Nature Fund for the Private Sector in Asia ( Canpa ). Both funds are administered by the 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,” says 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.”

Renewables target

Once operational, the project is expected to increase the country’s electricity production by 634 gigawatt-hours annually and offset at least 354,000 tonnes of carbon dioxide emissions. This will contribute to Uzbekistan’s target of achieving a 40% share of renewables in its power generation mix by 2030.

ADB is also providing 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 US$9 million, will help mitigate risks associated with the power offtaker’s payment obligations.

LEAP 2 is an ADB-managed fund with a US$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 healthcare, 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 C$360 million ( US$262 million ) from the Government of Canada. The fund builds on the success of 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.

At the end of 2025, Masdar’s total gross generation capacity ( operational and under development ) exceeded 50 gigawatts from renewable energy projects globally, with the goal of increasing this capacity to 100GW by 2030. ADB has financed nine Masdar projects, six of which are in Uzbekistan.