The European Bank for Reconstruction and Development (EBRD) has confirmed its intentions to expand investment cooperation with Uzbekistan, paying special attention to renewable energy, private sector development, and critical raw materials. The bank’s Vice President, Matteo Patrone, discussed this in an interview.

Record Financing Figures

In 2024, the volume of EBRD investments in Uzbekistan’s economy reached a historic high of €938 million. This allowed the country to once again secure its position as the leading recipient of the bank’s financing in the Central Asia region.

According to the bank’s Vice President, these results were achieved thanks to favorable legislation in the renewable energy sector, which actively attracts foreign investors. The bank also cooperates closely with the Foreign Investors Council under the President, serving as a co-chair of this platform, which facilitates effective dialogue between the government and international business.

Support for the Private Sector and SMEs

The EBRD continues to work actively with local financial institutions. Last year, 11 banks in Uzbekistan received more than €300 million in the form of credit lines and trade finance. These funds are directed towards supporting small and medium-sized enterprises (SMEs), developing “green” and inclusive lending, as well as adapting to climate change and implementing resource-saving technologies.

The bank also notes the rapid development of the local corporate sector. Specifically, two contracts totaling €27 million were recently signed to support the production of large-diameter pipes and copper pipes.

Renewable Energy and Green Hydrogen

More than half of the funds allocated by the EBRD were directed towards the development of the “green” economy. A landmark project was the $65 million financing provided to ACWA Power for the implementation of a pilot project for the production of “green” hydrogen.

The complex will consist of a new wind power plant with a capacity of 52 MW and an electrolyzer with a capacity of 20 MW. This is the first facility of its kind in Central Asia. Once launched, it will produce up to 3,000 tons of renewable hydrogen annually, which will reduce carbon dioxide emissions by 22,000 tons per year. The project is designed to replace the use of “grey” hydrogen, produced from natural gas, in the production of ammonia fertilizers.

Development of Energy Storage Systems (BESS)

To support Uzbekistan’s ambitious goals of increasing the share of renewables to 54% by 2030 (approximately 34 GW), the EBRD is actively financing the modernization of power grids and the introduction of Battery Energy Storage Systems (BESS).

Key initiatives include:

• A joint project with ACWA Power — Sazagan Solar, which includes a photovoltaic station and batteries with a capacity of 1,336 MWh.

• Financing of a solar station with a capacity of 200 MW and a BESS system with a capacity of 501 MWh in the Tashkent region.

These technologies allow for smoothing out the instability of energy generation from renewable sources and ensure the reliability of the power system during peak hours.

Critical Raw Materials

The EBRD also aims to cooperate in the field of critical raw material extraction, demand for which will increase significantly by 2040 due to the needs of clean energy technologies. The bank is ready to support responsible investments in the mining sector, facilitating Uzbekistan’s integration into global supply chains.

Source: Gazeta.uz