Leading international financial institutions are providing funding for the development of Uzbekistan’s first 100MW solar PV plant.
The World Bank, the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC) and the Asian Development Bank (ADB) are providing loans for the development of the solar PV plant in the city of Navoi.
The World Bank Group, Abu Dhabi Future Energy Company PJSC (Masdar), the Asian Development Bank (ADB) and the Government of Uzbekistan signed agreements to finance the project under efforts to support the country’s clean energy transition whilst combating climate change and ensuring the security of supply.
The IFC and the ADB will provide $60 million in finance for the project for the first large-scale, privately developed and operated renewable energy facility in Uzbekistan.
The EBRD will provide a loan to Masdar for the development of the plant whilst the World Bank is providing a $5.1 million payment guarantee for the Government of Uzbekistan to support the development of the project.
The project will comprise 300,000 photovoltaic panels occupying a 268-hectare plot of land.
The project is set to be completed in 2021 and produce 270HWh per year of electricity, enough to power 31,000 homes and prevent the emissions of 156,000 tons of greenhouse gases.
To date, Uzbekistan generates 85% of its electricity in thermal power plants. Hence the project will increase the country’s portfolio of renewables.
Uzbekistan plans to increase its renewables portfolio from 65,000GWh in 2019 to 103,000GWh by 2030.
Wiebke Schloemer, IFC director for Europe and Central Asia, said: “The project will have an enormous effect, serving as a best practice example in Uzbekistan, opening new markets for private investment and helping accomplish the country’s goal of increasing the use of renewable energy.
“It will also help reduce the burden on public finances, which could be deployed into other critical sectors of Uzbekistan’s economy to support its recovery from the COVID-19 pandemic.”
Lilia Burunciuc, World Bank regional director for Central Asia, adds: “Our technical assistance, financing and guarantees will help the Government to grow the share of renewable energy generation from currently less than 0.2 percent to 25 percent by 2030 and attract private investments into the renewable energy sector. They will also facilitate the Government efforts in the energy sector reform, the integration of renewable energies into the grid, and the global climate change mitigation.”