The World Bank Group, Abu Dhabi Future Energy Company PJSC (Masdar), and the Government of Uzbekistan have signed a financial agreement to fund a 250-megawatt (MW) solar photovoltaic plant with a 63-MW battery energy storage system (BESS). This project aims to provide clean and reliable electricity to approximately 75,000 households.
The project represents Central Asia’s first renewable energy initiative to include an integrated BESS component. This innovative addition will enhance the efficiency and flexibility of the power system, ensuring a more secure supply and mitigating the intermittency of renewable energy generation.The financing package includes a loan of up to $53 million from IFC and additional loans totaling up to $106 million from the Asian Development Bank (ADB), Dutch Entrepreneurial Development Bank (FMO), and Japan International Cooperation Agency (JICA). This funding will support the construction and operation of the new plant. Additionally, IFC will provide interest rate swaps for the entire debt amount, enabling the project to effectively manage interest rate risks.
The World Bank is offering a guarantee of up to $12 million to support the government’s payment obligations for the project. The investment package also includes blended finance support, featuring concessional senior loans of $20 million each fromThe solar power plant, slated for construction in the Alat district of the Bukhara region, is expected to reduce over 327,000 metric tons of CO2 emissions annually. This will be achieved by generating more than 585 gigawatt hours of renewable energy each year. the Canada-IFC Blended Climate Finance Program and the ADB-managed Leading Asia’s Private Sector Infrastructure Fund (LEAP).
“Our growing partnership with Uzbekistan in renewables is bringing clean and sustainable energy to the population at competitive prices,” said Wiebke Schloemer, IFC Director for Türkiye and Central Asia. “The new solar plant with a battery energy storage system will not just boost the uptake of renewable energy in the country, but also help stabilize and strengthen existing electricity grids and aid the global fight against climate change.”
“This project will enhance Uzbekistan’s energy security through the use of innovative solutions and technologies,” added Marco Mantovanelli, World Bank Country Manager for Uzbekistan. “In addition to attracting private sector participation, the World Bank guarantee has also contributed to ensuring an affordable supply of renewable energy for households and businesses in the country.”
Discover more from SolarQuarter
Subscribe to get the latest posts sent to your email.
