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UAE government-owned renewable energy company masdar The financing of three solar photovoltaic projects in Uzbekistan has been completed.
The projects will form part of the largest solar development program in the region, with a combined capacity of approximately 900 MW, and construction will begin soon.
Asian Development Bank(Asian Development Bank), Asian Infrastructure Investment Bank (AIIB), European Bank for Reconstruction and Development (European Bank for Reconstruction and Development), and the European Investment Bank (european investment bank) funding projects.
Various international financial institutions have provided $396.4 million to finance solar projects in Uzbekistan, and the European Investment Bank has approved a loan of $83.6 million.
ADB is providing three loans totaling $64.5 million from its ordinary capital resources to finance the construction and operation of three solar power plants in Uzbekistan.
These include $36.7 million for the Sherabad plant, $13.5 million for the Samarkand plant and $14.3 million for the Jizzakh plant.In addition, ADB has mobilized a total of $37.5 million in Class B syndicated loans ILX Fund Onean Amsterdam-based private credit fund focused on sustainability goals in emerging markets, to support the financing of the three plants.
The EBRD is offering A/B loans and revolving loans, with the A loan totaling up to $109 million, the B loan expected to be provided by Dutch entrepreneurial development bank FMO, and three revolving loans of up to $78 million.
The financing for the three solar power plants also includes project finance loan agreements totaling US$83.6 million from the AIIB.
The plan aims to build three solar power plants with a combined output of 897 megawatts, helping Uzbekistan reduce its dependence on fossil fuels and diversify its energy sources.
The project in Uzbekistan received financial support from Masdar and the AIIB under the Energy Transition Accelerator Financing (ETAF) initiative. ETAF is a multi-stakeholder climate finance platform that aims to deploy 5 GW of new renewable energy in developing countries by 2030.
Last year, Masdar signed agreements with Uzbekistan’s Ministry of Investment, Industry and Trade and the JSC State Grid to build and operate three large-scale solar projects: the Sherabad Solar Project with a capacity of 457 MW, and the Samarkand and Jizzakh Solar Projects, Each project has a capacity of 220 MW.
Together, these projects will generate enough electricity to power more than 1 million homes and reduce CO2 emissions by more than 1 million tons per year.
These businesses are expected to begin operations in 2024.
Uzbekistan aims to develop 7 GW of solar and 5 GW of wind by 2030, aiming to meet 25 percent of its electricity needs from renewables by then.
Niall Hannigan, Masdar’s chief financial officer, said the funding for the projects comes as a key stage in Uzbekistan’s clean energy journey.
He added that Masdar plays an important role in supporting the country’s ambitious renewable energy targets and looks forward to expanding its project portfolio in this key strategic market.
During last year’s COP27 climate conference, Masdar agreed to join ETAF, which could involve investing up to $200 million in equity in renewable energy projects.
Masdar aims to achieve 100 gigawatts of installed renewable energy capacity and 1 million tons of green hydrogen production per year by 2030, and help the UAE achieve net-zero emissions by 2050.
Masdar’s latest report disclose Decarbonization budgets are a major concern, as less than a third of executives in “hard to reduce” industries feel they have enough money to fund their decarbonization efforts.
At the beginning of the year, the company sign Reached agreements with Angola, Uganda and Zambia to develop renewable energy projects with a combined installed capacity of up to 5 GW to help African countries achieve their energy transition.
(Article updated with more information on funding)
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