The European Bank for Reconstruction and Development (EBRD) is providing up to $54.6mn (€50.5mn) to support Uzbekistan's transition to a low-carbon economy through the construction of a solar power project in the Khorezm region. This initiative aims to reduce the country's reliance on carbon-intensive thermal power generation.
The financial package includes a senior loan of up to $44.8mn (€41.5mn) and a special facility of €9mn to support the construction phase of the solar plant, which will be managed by Sarimay Solar, a special-purpose company wholly owned by Voltalia, a French international energy producer and service provider.
Additionally, the project will benefit from an unfunded guarantee for a senior loan tranche of $7mn (€6.5mn) provided by the European Union’s European Fund for Sustainable Development Plus. This EU funding is aimed at accelerating the adoption of climate change mitigation technologies in economies where the EBRD operates outside the EU.
The financing will enable Sarimay Solar to construct and operate a greenfield solar photovoltaic plant with a capacity of 100 MWac (126 MWdc). This project aligns with Uzbekistan’s goal of developing up to 25 GW of solar and wind capacity by 2030. Awarded through a competitive tender, it marks Voltalia’s first renewable energy venture in Uzbekistan.
Once operational, the plant is expected to generate up to 252 GWh of electricity annually, contributing to a reduction of over 141,000 tonnes of CO2 emissions each year.
For the fourth consecutive year, Uzbekistan is the leading recipient of EBRD funding in Central Asia. To date, the Bank has invested approximately €4.9bn across 167 projects in the country, primarily supporting private entrepreneurship. This partnership with Voltalia and the EU represents a significant step forward in Uzbekistan’s efforts to embrace renewable energy and combat climate change.
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