The World Bank has provided a $3.5 million guarantee to support the construction of a 100 MW solar power plant in the Khorezm region. This financial backing ensures the timely fulfillment of payment obligations for electricity purchased by the state-owned company Uzbekistan National Electric Grids from the new power station.
Key Project Details
Scheduled for commissioning in November 2025, the solar power plant is expected to generate over 240 gigawatt-hours of renewable energy annually. The facility, spanning 177 hectares, will be constructed and operated by the French company Voltalia. The project’s implementation will be managed by Sarimay Foreign Enterprise LLC, a subsidiary of Voltalia responsible for financing, building, and operating the plant.
Environmental and Social Impact
The solar power plant is projected to reduce annual carbon dioxide emissions by more than 230,000 tons and provide clean energy to approximately 60,000 households. This project aligns with Uzbekistan’s goals of increasing clean energy production and transitioning to a “green” economy.
Strategic Support from the World Bank
According to Tatyana Proskuryakova, the World Bank’s Regional Director for Central Asia, the project supports Uzbekistan’s Uzbekistan-2030 strategy by increasing the share of renewable energy sources. By 2030, Uzbekistan plans to achieve 25 GW of renewable energy capacity, which is expected to account for 40% of the nation’s electricity consumption.
Financial Agreements
A 25-year power purchase agreement has been signed between Sarimay Foreign Enterprise LLC and the state-owned Uzbekistan National Electric Grids. Under this agreement, the state company will purchase all the energy produced by the plant. The World Bank’s $3.5 million guarantee will secure the payment obligations under this agreement.
Future Prospects
This project is set to make a significant contribution to Uzbekistan’s efforts to combat climate change, develop renewable energy sources, and strengthen cooperation with the private sector. Earlier, the World Bank announced an $800 million concessional loan for Uzbekistan to support private sector development, social protection, and climate resilience systems.
Leave a Reply