Major Asian and European banks are financing the projects which will become operational next year and provide power to more than a million homes
Construction will begin soon after Abu Dhabi Future Energy Company (Masdar) secured financing for the development of three solar photovoltaic (PV) projects in the Republic of Uzbekistan.
The plants will have a combined capacity of around 900 megawatts – the largest solar development programme in the region – and will produce enough electricity to power more than 1 million homes, while displacing more than 1 million tonnes of CO2 emissions each year. The projects are expected to begin operations in 2024.
Financing is being provided by the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), the European Bank for Reconstruction and Development (EBRD), and the European Investment Bank (EIB). The Dutch Entrepreneurial Development Bank (FMO), and ILX, a sustainable development goal-oriented fun, are acting as B loan participants.
Niall Hannigan, Chief Financial Officer, Masdar, said: “Reaching this milestone for all three projects is a proud moment for Masdar and a key stage for Uzbekistan’s clean energy journey.
“Masdar is already playing a significant role in supporting Uzbekistan’s ambitious renewable energy objectives, and we look forward to continuing to grow our portfolio of projects in this key market.”
Hannigan added that this would not have been possible without the support of the Government of Uzbekistan, and the International Renewable Energy Agency (IRENA).
Masdar’s renewable energy projects in Uzbekistan
Abu Dhabi-based renewable energy company signed an agreement during last year’s COP27 climate conference to join IRENA’s Energy Transition Accelerator Financing (ETAF) platform, with the intention of potentially deploying up to $200 million equity investment on renewable energy projects.
The capital committed by Masdar and AIIB is under the ETAF initiative, which is a multi-stakeholder climate finance platform. It has a target of deploying 5 gigawatts of new renewable power in developing countries by 2030.
In 2021, Masdar signed agreements with Uzbekistan’s Ministry of Investments, Industry, and Trade, and the JSC National Electric Grid to design, finance, build and operate three utility-scale solar projects – the 457 MW Sherabad Solar Project, and the 220 MW each Samarkand and Jizzakh solar projects.
Masdar is already making an active contribution to Uzbekistan’s clean energy objectives, with the 100 MW Nur Navoi Solar project operational since 2021.
Uzbekistan is targeting the development of 7 GW of solar and 5 GW of wind capacity by 2030, as it looks to meet 25 percent of its electricity needs from renewable sources by that year.
Source: arabianbusiness
