EBRD contributes to Uzbekistan’s renewable energy sector with $205m solar plant investment

EBRD contributes to Uzbekistan’s renewable energy sector with $205m solar plant investment

(IN BRIEF) The EBRD is investing $205 million in the construction of three greenfield solar power plants in Uzbekistan. The financial package will be provided to Abu Dhabi Future Energy Company (Masdar), with expected co-financing from the Asian Development Bank, Asian Infrastructure Investment Bank, and the European Investment Bank. The three plants will generate up to 2,200 GWh of electricity, providing power to over 1 million homes and reducing annual CO2 emissions by up to 1.2 million tonnes. The investment aligns with Uzbekistan’s plan to develop 12 GW of solar and wind capacity by 2030 and achieve a carbon-neutral power sector by 2050.

(PRESS RELEASE) LONDON, 6-Apr-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD), a multilateral developmental investment bank, continues to support Uzbekistan’s significant renewable energy potential by financing the construction of three greenfield solar power plants, with a total installed capacity of nearly 900 MW. The $205 million financial package will be provided to the Abu Dhabi Future Energy Company, also known as Masdar, and co-financed by the Asian Development Bank, Asian Infrastructure Investment Bank, and the European Investment Bank.

The package consists of EBRD A/B loans and revolving facilities. The A loans, collectively worth up to US$ 109 million, will be for the Bank’s own account and the B loans of up to US$ 18 million are expected to be financed by the Dutch entrepreneurial development bank FMO. The loans will be complemented by three revolving facilities of up to US$ 78 million provided by the EBRD.

The EBRD’s investment in Uzbekistan’s renewable energy sector aligns with its aim to become fully aligned with the Paris Agreement, which aims to keep the increase in global temperatures to below 2 degrees Celsius above pre-industrial levels. The three solar power plants, Nur Jizzakh, Nur Samarkand, and Nur Sherabad, are expected to generate up to 2,200 GWh of electricity, providing power to over 1 million homes in Uzbekistan and reducing annual CO2 emissions by up to 1.2 million tonnes.

This investment contributes to a long-term decarbonisation plan jointly developed by the EBRD and the Uzbekistan government, which aims to achieve a carbon-neutral power sector by 2050. Uzbekistan’s renewables deployment plan targets the development of 12 GW of solar and wind capacity by 2030, with the EBRD’s support aimed at enhancing the security of power supplies and attracting private investment into the energy sector.

To date, the EBRD has invested almost €4.12 billion in 129 projects across Uzbekistan, reflecting the bank’s commitment to the country’s economic and social development.

This financial package is a testament to the EBRD’s ongoing commitment to support sustainable and green energy transition in Uzbekistan and around the world.

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Email: press@ebrd.com

SOURCE: EBRD