ACWA Power has announced the completion of the dry financial close for its fully-owned $533m Tashkent Riverside project in Yuqori-Chirchiq, located in Uzbekistan’s Tashkent Region.

The project is made up of a 200MW solar photovoltaic (PV) plant and a 500MWh battery energy storage system (BESS), which are expected to help stabilise the Uzbek grid.

ACWA Power said that it has signed financing documents with six lenders. These include the European Bank for Reconstruction and Development (EBRD), DEG, Islamic Development Bank (IsDB), Standard Chartered, Proparco, and KfW-IPEX Bank.

According to the Saudi Arabia-listed ACWA Power, total debt from the signings amounts to $386m, which represents over two-thirds of the project’s total cost.

This includes a loan of up to $183.5m from EBRD.

EBRD sustainable infrastructure group managing director Nandita Parshad said: “We are proud to partner with ACWA Power and co-financiers on the pioneering Tashkent Solar PV and energy storage project in Uzbekistan, the largest of its kind in Central Asia.

“The project is core to Uzbekistan’s ambition to install 25GW of renewables by 2030. This project can power 170,000 households and the battery storage capacity is equivalent to 8000 electric vehicles.”

By the end of this decade, Uzbekistan aims to generate 40% of its electricity from renewables. The Tashkent Riverside project is poised to significantly contribute to Uzbekistan’s goals of transitioning to a low-carbon economy and diversifying its energy sources.

Its BESS will address the intermittency challenges inherent in renewable energy sources.

The BESS will store excess electricity generated during peak production periods and release it during low production times, ensuring a stable and reliable electricity supply to the grid. This capability will help meet Uzbekistan’s increasing energy demands.

Underpinned by a 25-year power purchase agreement (PPA) between ACWA Power and the National Electrical Grid of Uzbekistan, the Tashkent Riverside project will be developed as a ‘Build, Own, Operate, Transfer’ initiative.

ACWA Power will lead the construction, engineering, operation, and maintenance of the plant.

ACWA Power CEO Marco Arcelli said: “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. This trust is built on our unparalleled track record and we look forward to the successful execution of this new project to contribute to the country’s ambitious low carbon future.”