The European Bank for Reconstruction and Development (EBRD) will provide a loan of up to $240m to JSC Uzbekenergo to improve power supply in south Uzbekistan by creating additional generation capacity at the Talimarjan Power Plant (TPP).
JSC Uzbekenergo, the state-owned vertically integrated power utility, is responsible for the majority of the country’s electricity generation, transmission and distribution.
The TPP project will be the largest EBRD investment in Uzbekistan to date.
The EBRD funding will enable the power utility to finance the installation of at least 900MW combined cycle gas turbines (CCGT) and related infrastructure.
The project will be co-financed with the Asian Development Bank (ADB) and the Uzbek Fund for Reconstruction and Development (UFRD).
The investment is expected to address a major issue for the region – the provision of uninterrupted and sustainable power supply, which will support economic growth and improve the wellbeing of the population.
The new project is expected to help improve the efficiency and reliability of the power supply in Uzbekistan and also contribute to the government’s objective to create modern power generation capacities across the country.
According to the EBRD, this is particularly important for Uzbekistan, the most populated state in Central Asia, as energy losses of up to 20% are experienced currently due to unreliable power supply and obsolete facilities across the country.
The new, high-efficiency CCGT design is also expected to help reduce carbon intensity to around 350kg CO2/MWh, which is nearly half the current average across the power sector in Uzbekistan.
The project will enable significant reduction of the carbon footprint of the national power sector.
So far, the EBRD has invested €1.3bn through 70 projects in the economy of Uzbekistan.
Earlier in December 2018, EBRD arranged a €24.5m syndicated loan for the creation of new renewable power generation capacity in Ukraine.
The loan consists of an ‘A Loan’ of up to €12.25m provided on the bank’s own account and a ‘B Loan’ of similar amount provided by FMO, the Netherlands Development Finance Company.
The funding will finance a 30MW solar plant in the Cherkasy region of Ukraine, which is expected to commence power generation in the fourth quarter of 2019.
The project will be implemented by a Ukrainian special purpose vehicle fully-owned by the Norwegian solar developer Scatec Solar.
This will be the first co-financing for EBRD and FMO in Ukraine in the renewables sector.
Image: EBRD to lend $240m for power generation projects in Uzbekistan. Photo: Courtesy of European Bank for Reconstruction and Development.