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• EBRD providing US$ 142 million for major renewable-energy and battery development in Uzbekistan
• Funds will help to construct 1 GW of solar and 1,336 MWh of battery energy storage capacity
• New solar plants will be owned by ACWA Power and Japanese investors

The European Bank for Reconstruction and Development (EBRD) is providing a comprehensive financing package of US$ 142 million (€121 million) for two special-purpose vehicles (SPVs) that will develop Uzbekistan’s and Central Asia’s largest combined solar photovoltaic and battery energy storage project to date.

The two SPVs (ACWA Power Sazagan Solar 1 and ACWA Power Sazagan Solar 2) will be majority owned by ACWA Power – an international developer, investor, co-owner and operator of a portfolio of power-generation and desalinated-water-production plants. The SPVs will be co-owned by Sumitomo Corporation, Shikoku Electric Power Company and Chubu Electric Power Company. The investment marks the first foray into renewable-energy and battery energy storage systems (BESSs) in Uzbekistan by the Japanese investors. 

The financing package consists of two senior secured loans. The first loan, of US$ 61 million (€52 million equivalent), will be provided to ACWA Power Sazagan Solar 1 for the development, construction and operation of a 500 MW solar photovoltaic power plant and a 668 MWh BESS in the Samarkand region of Uzbekistan. The second loan, of US$ 81 million (€69 million equivalent), will be made available to ACWA Power Sazagan Solar 2 for the development, construction and operation of a 500 MW solar photovoltaic power plant in the Samarkand region and a 668 MWh BESS in Uzbekistan’s Bukhara region.

The project is expected to be co-financed by the Japan Bank for International Cooperation, Nippon Export and Investment Insurance covered lenders, the Asian Development Bank and Islamic Development Bank. Together, the two SPVs will introduce the largest combined solar photovoltaic (1 GW) and BESS (1,336 MWh) capacity in Uzbekistan and across the region. This unprecedented deployment of BESS capacity will help the grid to mitigate the intermittency of renewable energy sources. The BESS technology will improve grid reliability and flexibility by making additional energy capacity available during periods of peak demand. 

The project will contribute to the government’s renewables plan, which is supported by the EBRD and targets the development of 25 GW of solar and wind capacity by 2030. Once commissioned, the new renewable energy capacity is expected to generate around 2,300 GWh of electricity per year that can power 600,000 households annually. 

The EBRD is a major financier of green energy projects in Uzbekistan. To date the Bank has supported 1.65 GW of wind capacity, 1.4 GW of solar photovoltaic and 334 MW/501 MWh of BESS in the country – projects sponsored by experienced international developers.  

The EBRD has invested over €5.35 billion in Uzbekistan to date across 188 projects, with the majority of this funding supporting private entrepreneurship, contributing to the country’s economic development. 

The Future of Tax in a Geopolitically Transformed World

We are delighted to announce that we will be hosting Baker McKenzie’s 39th Annual Asia Pacific Tax Conference, which will be held in Tokyo on 12 and 13 November 2025.

This prestigious event will bring our leading tax lawyers and practitioners from across Asia Pacific, Europe, and the United States to share strategic insights into the latest developments and trends shaping the global and regional tax landscape.

In an era of ongoing global uncertainty, we will examine pressing issues such as the impact of continued tariff shifts and the growing complexity of global and local tax environments on your business models and strategies. We will discuss how you can achieve resilience and growth amidst these challenges, providing guidance on managing tax affairs, optimizing positions, and mitigating compliance risks.

In addition to jurisdiction-specific updates covering Australia, Mainland China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand and Vietnam, we will discuss some of the most critical issues shaping the tax landscape. Key themes include addressing the tax and transfer pricing challenges arising from ongoing tariff turbulence, as well as the complexities of Pillar Two. We will also cover other high-impact topics in a series of focused breakout sessions, including cross-border M&A structuring, intragroup reorganizations, tax audit and controversy management, recent developments in tax case law, strategic approaches to APAs, MAP, and ICAP, the evolving VAT/GST landscape, tariff mitigation strategies and supply chain resilience, and outbound investments from Japan.

Conference materials will be made available on this page prior to the event. Please revisit for updates.

Laura Bicker
China correspondent, reporting from Gyeongju

Image source, EPA/Shutterstock

“No Trump!” a rally of hundreds shouted in the centre of South Korea’s capital Seoul over the weekend.

“No China,” chanted another rally nearby.

This is an indication of the diplomatic dance South Korea’s President Lee Jae Myung will have to perform this week as he hosts the leaders of both the US and China.

Seoul is – and has long been – a key US ally. It still needs Washington’s protection, but it also needs China, its biggest trading partner and a vital market for exports.

After Lee visited the White House in August, South Korea thought it had appeased its powerful friend – Trump agreed to lower tariffs from 25% to 15%.

But then more than 300 South Koreans were detained in a massive immigration raid at a Hyundai plant in the US state of Georgia. This has shaken ties – especially because Hyundai is a major investor in the US.

Anti-Chinese sentiment in South Korea has also grown steadily in recent years. Chinese interference became a common trope in conspiracy theories about former South Korean president Yoon Suk Yeol.

However Lee chooses to navigate between the world’s two biggest economies, it’s hard to imagine how he can afford to alienate either.

Read more about South Korea’s delicate dance between the US and China.