Abu Dhabi Future Energy Company PJSC (Masdar) has reached financial close on a package worth more than USD 225 million for the Guzar 300-megawatt (MW) solar power plant and 75-megawatt-hour (MWh) battery energy storage system (BESS) in Kashkadarya, Uzbekistan. The milestone represents another significant step in Masdar's expanding renewable energy portfolio in the Central Asian nation.

Financing Structure and International Support

The European Bank for Reconstruction and Development (EBRD) will provide up to USD 195.5 million of the total financing package. This EBRD contribution includes funding from Canada and Finland under the Special Fund for the High Impact Partnership on Climate Action (HIPCA), as well as support from the Japan-EBRD Cooperation Fund.

The Asian Development Bank (ADB) is contributing USD 30 million to the project, with financing sourced from the Leading Asia's Private Infrastructure Fund 2 (LEAP 2) and the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA), both administered by ADB. Abu Dhabi Commercial Bank provided hedging services for the transaction.

Project Operations and Partnership Agreement

Masdar will design, build, and operate the solar and BESS project under a Public-Private Partnership agreement it signed with JSC National Electric Grid of Uzbekistan. Once operational, the project will avoid more than 400,000 tonnes of carbon dioxide annually and provide enough electricity to power the equivalent of 60,000 homes.

The project is designed to contribute to Uzbekistan's target of generating 54 percent of power from renewables by 2030. The Guzar facility forms part of Masdar's broader portfolio of 2 GW renewable energy projects in Uzbekistan, representing investments exceeding USD 2 billion.

Ceremonial Signing and Leadership Presence

The financial close milestone was marked with a signing ceremony held at the Masdar Pavilion during Abu Dhabi Sustainability Week. The ceremony took place in the presence of several high-level officials, including HE Suhail Mohamed Al Mazrouei, Minister of Energy and Infrastructure of the United Arab Emirates, HE Jamshid Khodjaev, Deputy Prime Minister of the Republic of Uzbekistan, and HE Jurabek Mirzamahmudov, Minister of Energy of the Republic of Uzbekistan.

Mohamed Jameel Al Ramahi, CEO of Masdar, attended the ceremony alongside Masdar COO Abdulaziz Alobaidli, who signed the agreement. Representatives from the EBRD, ADB, and ADCB also participated in the signing ceremony.

Masdar's Strategic Expansion in Uzbekistan

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, stated that the company has been collaborating with partners in Uzbekistan since 2021 to deliver over 2 gigawatts of renewables capacity to support the country's clean energy goals. He noted that Uzbekistan's abundant wind and solar resources, combined with its supportive regulatory regime, make it an attractive market for Masdar as the company pursues its growth strategy to reach 100GW global capacity by 2030.

Masdar's investment in Uzbekistan to date exceeds USD 2 billion. The company developed the first utility-scale solar project in the country, the 100 MW Nur Navoi plant. Most recently, in November, Masdar signed a Battery Storage Services Agreement with JSC Uzenergosotish to develop the nation's largest standalone BESS project, with a capacity of 300 MW/600 MWh in the Navoi Region of Uzbekistan.

The CIS region is a strategic market for Masdar, which targets a global portfolio capacity of 100GW by 2030. Beyond its operations in Uzbekistan, the company maintains an active presence across Azerbaijan, Kazakhstan, and other regional markets.

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