Uzbekistan Invests $230 Million in Local Solar Power Projects
Uzbekistan is making a significant stride in its renewable energy transition, committing approximately $230 million to develop small-scale solar power projects aimed directly at empowering local communities. This strategic investment is designed not only to expand the nation’s green energy capacity but also to integrate land restoration efforts, tackling environmental and socio-economic challenges simultaneously.
Powering Communities from the Ground Up with Uzbekistan solar investment
At the core of this initiative is a plan to install solar plants, each with a capacity of 300–500 kilowatts, in nearly 1,000 neighborhood-based community units, known as mahallas. These installations will target socio-economically challenged areas across 37 districts.
Under the program, the solar plants will be leased to the local communities for seven years on preferential, affordable terms. The primary goals of this grassroots approach are to:
* Create stable income sources for local populations.
* Reduce electricity shortages and enhance energy security.
* Support the growth of small businesses and local infrastructure.
* Generate employment as part of a broader poverty-reduction strategy.
The funding for this ambitious project is a joint effort, with $110 million provided by Uzbekistan’s Fund for Reconstruction and Development and an additional $120 million sourced from international financial institutions.
A Dual Approach: Green Growth and Land Restoration through Uzbekistan solar investment
What sets this initiative apart is its dual focus on energy and ecology. The solar rollout is paired with a comprehensive plan to restore over 630,000 hectares of pastureland between 2026 and 2027. This includes planting crops on 300,000 hectares and installing water wells across 130,000 hectares, directly boosting food security and building climate resilience.
Analysts have highlighted this combined strategy as a pivotal shift toward “green growth,” where environmental action is intrinsically linked to job creation and sustainable rural development.
A Piece of a Larger National Strategy for Uzbekistan solar investment
This $230 million investment is a key component of Uzbekistan’s broader and aggressive push for a sustainable future. It complements several other large-scale developments and international partnerships that are reshaping the country’s energy landscape.
Notably, the European Bank for Reconstruction and Development (EBRD) invested a record sum of over $1 billion in Uzbekistan in 2025, with approximately 60% of these funds dedicated to green economy projects. This includes a landmark partnership with ACWA Power to develop Central Asia’s largest 1 GW solar plant, complete with battery storage.
The scale of Uzbekistan’s ambition is further evidenced by major supply agreements, such as JA Solar securing a deal to provide 1.2 GW of solar modules for key photovoltaic projects in the country.
The commitment to green energy extends to the household level as well. The government has allocated an additional $16 million for energy-efficient renovations for vulnerable families, which includes the installation of solar equipment. This holistic approach is bolstered by strong international backing, with the portfolio of joint projects between Uzbekistan and the Asian Infrastructure Investment Bank (AIIB) now exceeding $7 billion.
By combining massive infrastructure projects with targeted, community-level investments, Uzbekistan is building a multi-faceted and resilient path toward a sustainable and prosperous future.
