EBRD, ADB and IFC to Provide Financing for a 100 MW Nur Navoi Solar (PV) Photovoltaic Power Plant in Uzbekistan
/24th December 2020, EBRD, RENEWABLE MARKET WATCHTM/ The European Bank for Reconstruction and Development (EBRD) shall provide financing for a 100 MW solar photovoltaic (PV) power plant in Uzbekistan. The plant is located in the Navoi region and is one of the first renewable energy projects in this country realised by the private investors. The engagement of the EBRD is providing an equity bridge loan of up to US$ 60 million to Nur Navoi Solar Holding for the construction and operation of the plant. The loan will allow the project investors Masdar, owned by Mubadala Investment Company, a global investment holding established and wholly owned by the Government of Abu Dhabi, to borrow the amount of equity it puts into the project. Uzbekistan plans five large scale solar photovoltaic (PV) by 2021. Energy security, affordability, and efficiency are key priorities of the government’s energy strategy, according to the recently published report Uzbekistan Solar Photovoltaic (PV) Power Market Outlook 2020÷2030.
NUR NAVOI SOLAR 100 MW PHOTOVOLTAIC (PV) POWER PLANT PROJECT
This innovative financial structure is currently not available from international or domestic lenders in Uzbekistan. It will be complemented by a financial package of up to US$ 60 million arranged by the International Finance Corporation (IFC) and the Asia Development Bank (ADB). The financing package includes a senior loan of up to a $20 million from IFC’s own account, financing of up to $20 million from Canada-IFC Blended Climate Finance Program and a loan of up to $20 million from the ADB. IFC will also provide up to $1 million in interest rate swaps.
The World Bank is providing a US$5.1 million payment guarantee for the Government of Uzbekistan to backstop the payment obligations under the project.
Uzbekistan aims to develop 8 GW of solar and wind power capacity by 2030. By financing the Nur Navoi project, the EBRD is also supporting the replacement of Uzbekistan’s ageing power sector infrastructure and establishing a practical regulatory framework, which has now paved the way for this first competitively tendered renewable energy project in the country. On completion, the plant will contribute to annual reductions of 156,000 tonnes of CO2 emissions.
CLIMATE AND ENERGY POLICIES
Uzbekistan aims to maximize savings through rational use and application of clean energy technology, integration of energy efficiency into national planning, improvement of sector performance through commercializing utility operations, the attraction of private sector participation, and increase of energy exports on a commercial basis.
Uzbekistan is the most populous country in Central Asia. Despite it being the biggest electricity producer in the region, the country’s power sector is highly inefficient because most of the power generation facilities are from the Soviet Union era. Since 2016 Uzbekistan has significantly focused its attention on developing renewable energy resources and, in particular, solar energy, in a bid to diversify its energy balance and reduce its dependence on gas.
CURRENT SOLAR PHOTOVOLTAIC (PV) MARKET SITUATION
The maturing European, Asian and North America markets allowed investors to look for new opportunities in CIS states, according to the research department of Renewable Market Watch™. In recent years, The country is blessed with abundant solar irradiance (annual total global horizontal irradiance) of 1,400 - 1,800 kWh/m2.
Solar PV capacity in the country at the end of 2020 is insignificant, but is forecasted to increase in the next decade, reveals Renewable Market Watch™ in its recently published report Uzbekistan Solar Photovoltaic (PV) Power Market Outlook 2020÷2030.
If you need more information for solar projects in Uzbekistan, please do not hesitate to download from here: Sample list with contact details of solar project owners in Uzbekistan
The full contact details and relevant information about the Uzbekistan solar PV market, you may receive with a 1-year subscription for Uzbekistan Solar Photovoltaic (PV) Power Market Outlook 2020÷2030. Furthermore, you will receive up to 4 quarterly updates.
The original publication of the EBRD about this solar project, you may read here: EBRD and partners’ private renewable energy project in Uzbekistan
For better understanding about benefits from using our reports you may read here: Benefit List - Reports of Renewable Market Watch - 2020
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