The World Bank has sanctioned a $3.5m payment guarantee to bolster Uzbekistan’s renewable energy sector.
This funding support will ensure the state-owned National Electric Grid of Uzbekistan fulfils its obligations to purchase electricity from a forthcoming 100MW solar power plant in the Khorezm region, operated by Voltalia.
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The Khorezm solar plant, with a commissioning date set for November 2025, will span 177ha. It is estimated to produce over 240GWh of renewable energy per year.
This project is anticipated to cut CO₂ emissions by upwards of 230,000tpa and supply clean energy to roughly 60,000 homes.
World Bank regional director for Central Asia Tatiana Proskuryakova said: “The World Bank Group supports Uzbekistan in meeting its energy needs and expanding renewable energy to reach 25GW of capacity, covering 40% of the country’s electricity consumption by 2030 as stated in the state programme ‘Uzbekistan – 2030’.
“We are pleased that the solar plant in the Khorezm region, backed by the Bank’s payment guarantee, will bring new private sector players to diversify the country’s renewable energy sector.”
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By GlobalDataThe implementation of the solar power plant project is entrusted to Sarimay Foreign Enterprise, a Voltalia-owned project company. It will manage the development, financing, construction, ownership, and operation of the solar facility.
Post-commissioning, the project company will enter a 25-year power purchase agreement with the National Electric Grid of Uzbekistan to sell the generated electricity.
Besides the purchase obligations of the National Electric Grid of Uzbekistan, the guarantee has also catalysed the mobilisation of $80m in capital investment.
This includes a finance package exceeding $54m from the European Bank for Reconstruction and Development, facilitating the project’s realisation in the Khorezm region.
The World Bank Group has previously supported several renewable energy projects in Uzbekistan, including a 100MW solar power plant in the Navoi region, as well as 440MW solar facilities in the Samarkand and Jizzakh regions.
It is also backing power projects that are under development in the country, including the 500MW wind power plant in the Navoi region, and a 250MW solar plant with a 63MW/126MWh battery energy storage system in the Bukhara region.
