Why is this important
The $1.45 billion investment is the largest “green” project involving Japan in Central Asia. The 1,000 MW capacity will provide electricity to approximately 500,000 households and reduce Uzbekistan’s dependence on gas generation. Energy storage systems solve the main problem of solar energy — production instability.
What happened
- JBIC is organizing $1.45 billion in financing for solar complexes near Samarkand;
- JBIC will provide $635 million — the largest share among creditors;
- The project includes two solar power plants with a capacity of 1,000 MW and storage systems;
- Owners: ACWA Power (51%), Sumitomo Corp., Chubu Electric, Shikoku Electric;
- The goal is to strengthen Japan’s presence in Central Asia.
Project participants
- ACWA Power (Saudi Arabia) – 51% share, the world’s leading renewable energy project developer;
- Sumitomo Corp. — major Japanese trading company;
- Chubu Electric Power is one of the largest energy companies in Japan;
- Shikoku Electric Power is a regional power company in Japan.
Financing
- JBIC: $635 million – largest share;
- Sumitomo Mitsui Banking Corp. and Norinchukin Bank – private banks;
- NEXI (Nippon Export and Investment Insurance) – risk insurance.
Technical parameters
- Capacity: 1,000 MW (two complexes);
- Location: near Samarkand;
- Feature: solar generation + energy storage systems (batteries).
Context
Uzbekistan is actively developing renewable energy, aiming to achieve 30% of “green” energy by 2030. The country has a powerful solar potential: 320 sunny days a year, high insolation. However, the main challenge is the instability of solar generation (day/night, seasonality).
Energy storage systems (batteries) are critically important: they store electricity during the day and release it in the evening when consumption peaks. This makes solar energy more reliable and competitive with gas generation.
ACWA Power is a Saudi company implementing the world’s largest renewable energy projects. ACWA Power is already building several solar and wind power plants in Uzbekistan. The company’s participation guarantees high performance quality.
Japanese strategy: Tokyo is strengthening its presence in Central Asia through infrastructure projects, competing with China and Russia for influence in the region. Financing green energy aligns with Japan’s global decarbonization agenda.
$1.45 billion is one of the largest investment projects in Uzbekistan’s renewable energy sector. For comparison: the total portfolio of projects involving European companies is €40 billion, including all sectors.
1,000 MW will provide electricity to about 500 thousand households (with an average consumption of 2 kW per house). This will reduce the load on gas-fired thermal power plants and reduce CO2 emissions by approximately 1.5 million tons per year.
The project under Samarkand is a strategically important location: the region with high solar coverage, proximity to major cities (Samarkand, Bukhara), ensures the demand for electricity.
