THE WORLD BANK WILL ALLOCATE 12 MILLION DOLLARS TO LAUNCH NEW SOLAR POWER PLANTS IN UZBEKISTAN
The World Bank will allocate $12 million for the project "Scaling solar energy in Uzbekistan-2". These are bank guarantees for the fulfillment of obligations for the purchase of electricity from two new solar power plants ($ 6 million each).
The Board of Executive Directors of the World Bank approved financing in the amount of US$ 12 million for the implementation of the project "Scaling up solar energy in Uzbekistan-2". The project will expand renewable energy production capacity and contribute to the implementation of plans for the transition to a "green" economy and the decarbonization process in the energy sector.
In 2019, Uzbekistan joined the Scaling Solar program of the World Bank Group ("Scaling solar Energy"). Within its framework, the project "Scaling solar energy in Uzbekistan-1" was implemented, which put into operation a 100 MW solar power plant in Navoi region.
It became the first large-scale renewable energy facility in Uzbekistan, built and managed by a private company selected for the project on the basis of a tender. The World Bank provided a bank guarantee for the fulfillment of obligations for the purchase of electricity generated by this plant, and the International Finance Corporation (IFC, also part of the World Bank Group) provided consulting services for the organization of the tender and financing for the implementation of the project.
The project "Scaling up Solar Energy-2" will increase energy production through the commissioning of solar power plants with a total capacity of 440 MW in two regions of Uzbekistan. The World Bank will provide bank guarantees to the National Electric Networks of Uzbekistan company to fulfill obligations for the purchase of electricity generated by the stations for a total amount of up to $ 12 million ($ 6 million for each station).
In May 2021, the winner of the tender for the construction of two solar power plants with a capacity of 220 MW each in the Kattakurgan district of the Samarkand region and the Gallyaral district of the Jizzakh region was announced. Masdar, a company from the UAE, offered the lowest electricity generation tariffs in the country and in the Central Asian region.
Stations in the Samarkand and Jizzakh regions will be able to generate up to 1.1 billion kilowatt hours per year. Their work will prevent carbon dioxide emissions on average in the amount of about 110 thousand tons per year, or a total of about 3.4 million tons over the entire life of these stations.
To launch solar stations, Masdar invests $193 million of its own capital in project companies. Masdar will also attract $216 million in debt financing from the Asian Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank (EIB) and the Asian Infrastructure Investment Bank (AIIB).