TASHKENT, Uzbekistan, May 21. The World Bank Group, Abu Dhabi Future Energy Company PJSC (Masdar), and the Government of Uzbekistan have inked a financial deal to support a 250-MW solar photovoltaic plant coupled with a 63-MW battery energy storage system (BESS), Trend reports.
According to the World Bank, the initiative aims to broaden access to clean and dependable electricity for around 75,000 households.
The project marks Central Asia's first renewable energy initiative with an integrated BESS component, which promises enhanced efficiency, flexibility, and reliability in the power system, thereby bolstering supply security and mitigating the variability of renewable generation.
The funding bundle encompasses a $53 million loan from IFC and loans totaling up to $106 million from the Asian Development Bank (ADB), Dutch Entrepreneurial Development Bank (FMO), and Japan International Cooperation Agency (JICA), all aimed at backing the construction and operation of the new plant.
Additionally, IFC will furnish interest rate swaps covering the entire debt amount, facilitating effective management of interest rate risks for the project.
The World Bank is furnishing a guarantee of up to $12 million to bolster the government's payment commitments for the project.
Moreover, the investment package incorporates blended finance assistance, comprising concessional senior loans of $20 million each from the Canada-IFC Blended Climate Finance Program and the ADB-managed Leading Asia’s Private Sector Infrastructure Fund (LEAP).
Meanwhile, the solar power plant, which will be constructed in the Alat district of the Bukhara region, is projected to cut over 327,000 metric tons of CO2 emissions annually by generating more than 585 gigawatt hours of renewable energy per year.
