As a result of a deal signed between the Ministry of Energy and Masdar, the National Electric Grid of Uzbekistan will be provided with clean and affordable electricity for a period of 25 years.
Masdar will source the electricity from its two solar photovoltaic projects, with a total capacity of 220MW, in the Jizzakh and Samarkand regions.
The National Electric Grid of Uzbekistan will purchase the electricity at record low tariffs of 1.791 US cents/kWh for the Samarkand site and at 1.823 US cents/kWh for the Jizzakh site.
In partnership with the International Finance Corporation (IFC), Masdar is investing $300 million for the development of the two projects and expects to begin construction in the first quarter of 2022.
The two projects are part of a wider scheme between the Government of Uzbekistan and the IFC to develop up to 900MW of solar energy through public-private partnerships.
Alisher Sultanov, Minister of Energy, said: “Uzbekistan has been working closely with the IFC to open up the country’s power sector to private investment and to help us reach our goal of 25% of energy consumption deriving from renewable sources by 2030.
“These projects are key components in our ambitious strategy to develop environmentally friendly renewable sources of energy to meet our growing electricity demand.”
The Uzbek government has also set a target to develop 8GW of solar and wind capacity by 2030 to reduce annual greenhouse gas emissions by about 500,000 tonnes and generate an additional 1,100 million kWh of electricity.