The World Bank has announced the approval of financial support of 12 million dollars for the "Scaling Solar 2" initiative in Uzbekistan. The project is expected to support the production of clean and renewable energy, including the country's goals of establishing a green economy, an official press release of the international lender reads.
Uzbekistan is the first country (outside of Africa) to join the program. Solar power plant named "100 MW Scaling Solar 1" in Navoi became the first large non-state developed and operated renewable energy facility in the country.
New power plants will generate additional 440 MW of electricity in two regions.
In 2021, Masdar, a United Arab Emirates-based renewable energy company won the bid of public-private partnerships (PPPs) for two separate solar power plants, each with a capacity of 220 MW in Kattakurgan district of Samarkand region and Gallaorol district of Jizzakh region. Masdar offered a bid the lowest electricity tariffs in the country and the broader Central Asian region.
To implement these solar power plants, Masdar will invest $193 million of equity in the Project Companies. The debt financing package of $216 million will be provided by the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and the Asian Infrastructure Investment Bank (AIIB).
The solar power plants in Samarkand and Jizzakh regions are set to generate 1.1 Terawatt-hour (TWh) of renewable electricity per year. They will avoid CO2 emissions of around 110,000 metric tons per year on average, or a total of about 3.4 million metric tons over their lifetime.
The World Bank will provide payment guarantees up to $6 million for each of the plants in two regions to National Electric Grid of Uzbekistan.
“Payment guarantees are critical to mitigate perceived risks and to signal to international investors that Uzbekistan is ready to mobilize much-needed private capital, clean technologies, and management expertise to develop its renewables sector with private sector participation,” noted Marco Mantovanelli, World Bank Country Manager for Uzbekistan.
According to him, the initiative will help the country meet rapidly growing demand in electricity as well as strengthen the security of supply and energy sector decarbonization.
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