Sunday, July 21, 2024

World Bank, Masdar, and Uzbekistan Launch Pioneering Solar Plant Mission

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Representational picture. Credit: Canva

The World Bank Group, Abu Dhabi Future Energy Company PJSC (Masdar), and the Government of Uzbekistan introduced a landmark monetary bundle to finance a 250-megawatt (MW) photo voltaic photovoltaic plant, built-in right into a 63-MW battery vitality storage system (BESS). This initiative, geared toward bettering entry to electrical energy for about 75,000 households, represents the primary renewable vitality venture in Central Asia that features a BESS part.

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New Energy Solutions

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An built-in BESS will enormously enhance the effectivity and adaptability of Uzbekistan’s electrical energy system, offering larger safety of provide and lowering the intermittency of renewable vitality sources. The venture shall be situated within the Alat district of the Bukhara area and is anticipated to generate greater than 585 gigawatt hours of renewable vitality yearly, lowering CO2 emissions by greater than 327,000 metric tons per 12 months.

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Comprehensive Financial Package

The financing bundle features a $53 million mortgage from the International Finance Corporation (IFC), together with loans totaling $106 million from the Asian Development Bank (ADB), the Dutch Entrepreneurial Development Bank (FMO), and the Japan International Cooperation Agency ( JICA) . In addition, IFC will present rate of interest swaps for the complete mortgage quantity to successfully handle rate of interest dangers. The World Bank additionally supplied a $12 million assure to assist the federal government’s fee obligations underneath the venture.

Blended monetary assist contains concessional senior loans of $20 million every from the Canada-IFC Blended Climate Finance Program and the ADB-managed Leading Asia’s Private Sector Infrastructure Fund (LEAP).

Strategic Partnership and Competitive Tendering

As the lead advisor to the transaction, IFC is working with the Uzbek authorities to kind a clear and aggressive tender. Masdar, the UAE’s flagship renewable vitality firm, was introduced because the successful bidder for the PPP tender in December 2022. The venture shall be applied via Nur Bukhara Solar PV LLC FE, a venture firm owned by Masdar. This entity is answerable for the event, financing, development, possession, operation, and upkeep of the photo voltaic plant and BESS, promoting electrical energy in Uzbekistan’s state-owned National Electric Grid underneath 25 years of Power Purchase Agreement.

Commitment to Renewable Energy

Uzbekistan goals to extend renewable vitality era to 25 GW, or 40% of whole electrical energy consumption, by 2030. This venture is in step with the nation’s clear vitality transition targets and helps financial progress. this. The World Bank Group helps Uzbekistan develop 2,000 MW of photo voltaic and 500 MW of wind energy by attracting non-public sector investments.

Statements from Key Stakeholders

Wiebke Schloemer, IFC Director for Turkey and Central Asia, highlighted the venture’s position in bringing clear and sustainable vitality to Uzbekistan at aggressive costs. Marco Mantovanelli, World Bank Country Manager for Uzbekistan, highlighted the venture’s contribution to bettering the nation’s vitality safety via revolutionary options and the participation of the non-public sector.

Expansion of Renewable Capacity

The World Bank and IFC have been instrumental in supporting Uzbekistan’s renewable vitality sector. They present ensures, financing, advisory, and technical help for a number of initiatives, together with a 100 MW photo voltaic plant in Navoi (operational since 2021), 440 MW photo voltaic vegetation in Samarkand and Jizzakh (underneath development) , and a 500 MW wind energy plant. in Navoi (underneath development). The new Bukhara venture will improve the renewable vitality era capability supported by the World Bank Group to about 1.3 gigawatts.



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