ACWA Power achieves financial close on Tashkent Riverside project in Uzbekistan

ACWA Power, a Saudi-listed leader in water desalination and energy transition, and a pioneer in green hydrogen, has announced the successful completion of the financial arrangements for the Tashkent Riverside project in Uzbekistan. This major initiative, valued at USD 533 million, includes the development of a 200MW solar photovoltaic (PV) plant and the largest battery energy storage system (BESS) in Central Asia, boasting a capacity of 500MWh.

The project’s financing was secured with contributions from six prominent lending institutions, including the European Bank for Reconstruction and Development (EBRD), Islamic Development Bank (IsDB), DEG, Proparco, Standard Chartered, and KfW-IPEX Bank. The total debt financing achieved through these agreements stands at USD 386 million, covering more than two-thirds of the project’s total costs.

Marco Arcelli, Chief Executive Officer of ACWA Power, emphasized the project’s significance in the context of global efforts toward decarbonization and the role of private capital in emerging markets. “The agreement today for the Tashkent Riverside project reflects the strong trust placed in ACWA Power as the private sector partner, and one of the global leaders in renewables and energy storage,” Arcelli stated.

Nandita Parshad, Managing Director of the Sustainable Infrastructure Group at EBRD, highlighted the project’s alignment with Uzbekistan’s renewable energy goals. “This project is core to Uzbekistan’s ambition to install 25GW of renewables by 2030,” she said. The Tashkent Riverside project is set to power 170,000 households and its battery storage capacity is equivalent to the battery capacity of 8,000 electric vehicles.

This project is a cornerstone in Uzbekistan’s strategy to transform its energy sector to a low-carbon model, aiming to generate 40% of its electricity from renewable sources by 2030. The BESS component will play a crucial role in stabilizing the energy supply by mitigating the intermittency issues commonly associated with renewable sources. It will store excess electricity produced during peak times and release it during periods of low production, ensuring a consistent and reliable energy supply.

Uzbekistan represents ACWA Power’s second-largest market in investment terms, underscoring the company’s commitment to the region. ACWA Power’s portfolio in Uzbekistan includes 11.6GW of power capacity, with 10.1GW from renewable sources, and the country’s first green hydrogen project. Moreover, ACWA Power recently signed a USD 4.85 billion power purchase agreement with the National Electric Grid of Uzbekistan for the Aral 5GW Wind Independent Power Producer (IPP) project, which will be Central Asia’s largest wind farm.