Uzbekistan and Masdar sign funding arrangements for 100MW solar project

Dec 23, 2020 07:21 PM ET
  • Solar developer Masdar has concurred finances from several global loan providers for a 100MW solar PV project in the city of Sherabad, Uzbekistan.

Called the Nur Navoir Solar project, it is the country's initial fully-financed independent solar project, according to the programmer, and also will certainly produce roughly 258.2 gWhs of power each year when it comes online.

Masdar developed Nur Navoi FE LLC (NNS) as the local project firm to supply and operate the PV plant.

Uzbekistan's Ministry of Investments and Foreign Trade (MIFT), the International Finance Corporation (IFC), Asian Development Bank (ADB), the World Bank Group (WBG) and the European Bank for Reconstruction as well as Development (EBRD) all authorized the finance arrangement this week that will add to Uzbekistan's development as a major solar power market. ADB and NNS signed a finance agreement of approximately US$ 17.5 million to the project, while the European Bank for Construction and also Development will hand over an equity bridge loan of up to US$ 60 million.

ADB's vice-president for private sector procedures, Ashok Lavasa, claimed the "spots" arrangement would certainly aid the government reach its target of 5GW of renewable energy by 2030.

Uzbekistan's Ministry of Energy has additionally unveiled prepare for a 2nd solar PV project in Sherabad, which the ADB committed to funding in early February as part of a broader press to develop 1GW of solar in the country.

The tender for the 2nd project will certainly be officially released in very early 2021.

Both facilities are to be gotten to supply power for 25 years to National Electric Grids of Uzbekistan.

Uzbekistan presently depends mainly on fossil fuels, notably natural gas, to fulfill its energy requirements. Hydropower, the country's predominant source of renewable energy, makes up just 2% of its key energy supply.

However, the Uzbek government has released numerous tenders this year to establish the renewable energy sector to diversify the country's power mix and also draw in exclusive financial investment. The federal government has actually likewise been dealing with the IFC to roll out the structuring as well as tendering of as much as 900MW of solar PV via private-public-partnerships (PPPs).

Mohamed Jameel Al Ramahi, president of Masdar, stated the brand-new solar project will certainly "act as a criteria for the country as it seeks to change its energy industry and also drive lasting healing."

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