BAKU, Azerbaijan, Dec. 23
By Klavdiya Romakayeva - Trend:
Asian Development Bank (ADB) and Nur Navoi Solar LLC (NNS) signed a loan in the amount of $17.5 million for the project on the construction of a 100 megawatt (MW) solar power plant, Trend reports referring to the press service of ADB.
It is noted that the mentioned project will be the first public-private partnership in the field of renewable energy in Uzbekistan and will improve access to reliable electricity in rural areas of the country.
The financing package for the power plant to be built near the city of Navoi in central Uzbekistan includes an ADB loan as well as a Canadian Climate Fund for the Private Sector in Asia II (CFPS II) loan to be managed by ADB.
The 100 MW project will generate about 258.2-gigawatt hours of clean energy annually, avoiding 157,502 tonnes of carbon dioxide emissions per year. NNS will supply its energy to the National Electricity Grid of Uzbekistan on the basis of 25-year electricity purchase and sale agreement.
“This project will significantly help Uzbekistan to achieve the goal of providing at least 25 percent of renewable energy capacity by 2030,” ADB's vice president for private sector operations and public-private partnerships Ashok Lavasa said.
NNS is a self-service business owned by the private company Masdar of the United Arab Emirates, also known as the Abu Dhabi Future Energy Company, which is the world leader in renewable energy. Masdar has developed utility projects, grid-connected projects, small-scale applications providing access to energy for off-grid communities, and projects to reduce carbon emissions.
ADB's loan includes a concessional financing tranche funded by CFPS II to help lower the electricity tariff for the project below expected and help demonstrate the commercial viability of solar projects as the country moves to clean energy. CFPS II is operated by ADB and was founded in 2017 by the Government of Canada to encourage private investment in climate change mitigation and adaptation projects in the Asia-Pacific region.
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