ADB, Masdar Sign $46.5M Loan for Uzbekistan's Nur Bukhara Solar and BESS Facility

The plant will use bifacial solar photovoltaic modules with single-axis tracking to optimize energy generation and lower costs per kilowatt-hour.

The Asian Development Bank (ADB) and Abu Dhabi Future Energy Company PJSC (Masdar) have finalized a $46.5 million loan agreement to construct the Nur Bukhara greenfield solar power plant and battery energy storage system (BESS) in Uzbekistan’s Bukhara region. This landmark project marks Central Asia's first renewable power facility featuring a utility-scale battery storage system.

Financing and Support Structure

The financing package is composed of:

$26.5 million from ADB’s ordinary capital resources.

$20 million from the Leading Asia’s Private Infrastructure Fund, administered by ADB.

Additional mobilization of $26.5 million from the Japan International Cooperation Agency (JICA).

Furthermore, the International Finance Corporation (IFC), along with the Canada–IFC Blended Climate Finance Program and the Dutch Entrepreneurial Development Bank, are providing parallel lending.

Project Specifications

Uzbekistan aims to generate 25% of its power from renewable sources by 2030. The Nur Bukhara facility will:

Generate 250 megawatts (MW) of power.

Store 126 megawatt-hours (MWh) of energy.

Include the construction of a 20-kilovolt substation and a 3.1-kilometer transmission line to connect to the national grid.

The plant will use bifacial solar photovoltaic modules with single-axis tracking to optimize energy generation and lower costs per kilowatt-hour. Expected to deliver 555 gigawatt-hours (GWh) of clean energy annually, the project will supply power to 55,000 households. The BESS will enhance grid stability by storing electricity and delivering it on demand, facilitating the integration of intermittent solar resources. All generated power will be sold exclusively to the National Electric Grid of Uzbekistan.

Strategic Importance and Statements

Suzanne Gaboury, ADB Director General for Private Sector Operations, emphasized the project's role in providing tailored climate financing solutions that are often beyond the reach of local commercial banks. "By filling crucial market gaps this way, ADB is helping Uzbekistan achieve its clean energy goals and projects like Nur Bukhara set a strong precedent that can be replicated across Central Asia."

Bruce Johnson, Masdar Director of Corporate Finance and Treasury, highlighted the collaborative effort and the project's significance in supporting Uzbekistan's renewable energy targets. "Masdar is proud to be a key partner in Uzbekistan's clean energy journey. Projects like Nur Bukhara will enhance the affordability and accessibility of reliable, clean energy for all Uzbek citizens and drive private sector growth."

Masdar and ADB Partnership

Masdar, a leading global renewable energy company, has developed projects in over 40 countries with a combined capacity exceeding 20 gigawatts. Masdar aims to expand its renewable energy portfolio to 100 gigawatts by 2030. Since 2020, ADB and Masdar have collaborated on multiple renewable power projects.

The Nur Bukhara solar and BESS facility represents a significant step towards sustainable energy development in Central Asia, showcasing the potential for future renewable energy projects in the region.