BAKU, Azerbaijan, December 13. The European Bank for Reconstruction and Development (EBRD) continues to invest in renewable energy power generation and low-carbon technologies in Uzbekistan, to help align the country’s power-sector development,Trend reports via the bank.
The bank has arranged two syndicated loans worth $520 million to help construct and put into operation two wind power plants with a total installed capacity of 1GW in the Bukhara region.The financing is the EBRD’s largest renewable energy project to date across its regions.
The bank’s loan of $277 million to Bash Wind Power Plant (WPP) will consist of a loan of $150 million on the EBRD’s own account and a loan of $127 million, which will be syndicated to commercial lenders. The new wind power plant will generate more than 1,650 GWh of electricity annually and help reduce annual CO2 emissions by 930,000 tones.
The EBRD’s $243 million loan to Dzhankeldy WPP will consist of a loan of $150 million on the bank’s account, while the remaining $93 million will be syndicated to commercial banks. This power plant will generate more than 1,550 GWh of electricity annually and help cut annual CO2 emissions by 890,000 tones.
The two projects will also be co-financed by the German development finance institution "Deutsche Investitions und Entwicklungsgesellschaft" (DEG), the French Proparco Development Agency, Standard Chartered Bank and other banks.
Uzbekistan’s renewable deployment plan targets the development of 12 GW of solar and wind capacity by 2030. These projects are a significant addition to the EBRD’s renewable energy portfolio in the country and will help Central Asia’s largest economy achieve its ambitious objective.
The projects contribute to implementation of a long-term decarbonization strategy that the EBRD and the government of Uzbekistan have jointly worked on, which will support the plan to achieve a carbon neutral power sector by 2050.