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EIB Approves Loan of $83.6 Million for Uzbekistan Solar Programme

EIB Approves Loan of $83.6 Million for Uzbekistan Solar Programme

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  • Together with the Asian Development Bank, the Asian Infrastructure Investment Bank and the European Bank for Reconstruction and Development, the EIB will provide a collective $396.4 million to finance the construction and operation of three solar photovoltaic plants with a total output of 897 MWac.
  • This will increase the electricity supply and reduce the need for fossil fuel generation in Uzbekistan.

Vice-President of the European Investment Bank (EIB) Teresa Czerwińska remarked, “This project will help to meet EU objectives and Uzbekistan’s national objectives related to energy generation. It is in line with EIB priorities on renewable energy, climate action and environmental sustainability. It will help to reach Uzbekistan’s target of using 25% renewable sources for electricity generation by 2030. At the same time, it will improve quality of life for people in Uzbekistan by reducing carbon emissions and air pollution.”

The loan is to fund three separate projects, all fully owned by Masdar (Abu Dhabi Future Energy Company PJSC). It will finance the construction and operation of three solar photovoltaic plants: two plants generating 220 MWac each located in Samarkand and Jizzakh, and one plant generating 457 MWac in Sherabad. The funds will also be used to connect the plants to the public electricity network, in a grid owned and operated by Uzbekistan’s transmission system operator. This will advance the country’s plan to develop 7 GW of solar and 5 GW wind capacity by 2030. Once implemented, the project will help reduce annual greenhouse gas emissions by the equivalent of over one million tonnes of CO2.

See related article: OPEC Fund Contributes $40 Million Financing to Two Wind Farms in Uzbekistan

The project will increase Uzbekistan’s electricity supply, helping address the country’s growing energy demand and diversifying its energy away from carbon emissions. Construction will begin immediately, and the new photovoltaic plants will become operational in 2024.

The project will also contribute to priorities identified among the United Nations’ 2030 Sustainable Development Goals: affordable and clean energy; decent work and economic growth; industry, innovation and infrastructure; and climate action.

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