The Asian Development Bank (ADB) and “Nur Navoi Solar” Foreign Enterprise Limited Liability Company (NNS) have signed up for loans up to $17.5m for a 100MW solar power plant in Uzbekistan.
The project, to be built near Navoi City, will be the first public-private partnership renewable energy project in the country.
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It is expected to play a key role in providing access to affordable and reliable renewable energy in the rural areas, said ADB.
The funding for the power project includes a loan from ADB and a loan from the Canadian Climate Fund for the Private Sector in Asia II (CFPS II), which will be administered by ADB.
It will generate about 258.2GWh of clean energy avoiding the emission of 157,502 tonnes of CO2 every year.
NNS will supply the power generated from the plant to the National Electric Grid of Uzbekistan under a 25-year power purchase agreement.
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By GlobalDataADB vice-president for private sector operations and public-private partnerships Ashok Lavasa said: “As the first major private sector renewables investment in Uzbekistan, Navoi solar is a landmark transaction in many ways.
“The project will significantly help the government in meeting its target of at least 25% renewable energy capacity by 2030.”
ADB said that it also provides funding for the construction of a high-voltage transmission line to enhance the electricity grid in the country.
The project is in line with ADB’s country partnership strategy (2019–2023) for Uzbekistan, which focuses on the bank’s private sector financing support for renewable energy.
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ADB to provide loan for 100MW solar power plant in Uzbekistan. (Credit: Samuel Faber from Pixabay)
