- EBRD is extending a US$ 19.3 million loan to ACWA Power Wind Karatau FE LLC to finance construction and operation of a 100 MW wind power plant in Karakalpakstan
- Project is the outcome of the first phase of EBRD's programme to support authorities on developing 2,000 MW of wind capacity
- Renewables capacity financed by EBRD in Uzbekistan increases to 2,700 MW
The European Bank for Reconstruction and Development (EBRD) is supporting the development of Uzbekistan’s renewable energy capacity by extending a US$ 19.3 million loan to ACWA Power Wind Karatau FE LLC to finance the construction of a 100MW wind power plant (WPP) in the republic of Karakalpakstan in western Uzbekistan. The project will also be co-financed by the German Development Finance Institution Deutsche Investitions und Entwicklungsgesellschaft (DEG, part of KfW Group) and by the French Development Finance institution Société de Promotion et de Participation pour la Cooperation Economique (Proparco, part of the Agence Française de Développement Group).
Uzbekistan’s power sector is a key enabler of the country’s economic growth, but it suffers from ageing infrastructure, which results in inefficient capacity, supply imbalances and occasional blackouts. The authorities have committed to ambitious renewable energy targets as part of the country’s carbon neutrality goals under the Paris Agreement, to attain energy security, and to achieve sustainable economic growth.
“We are proud to support ACWA Power, our long-standing client, and this 100 MW wind farm in the Republic of Karakalpakstan, Uzbekistan. The region of the Aral Sea is rejuvenating its economy capitalising on its wind and solar resources. This is the first project under the EBRD's auction advisory programme to help deliver 2GW of wind power through competitive bidding processes. It sets a record low price for wind energy and will deliver more than 178,000 tonnes of CO2 emissions savings annually” said Nandita Parshad, Managing Director of EBRD's Sustainable Infrastructure Group.
The EBRD has so far financed 2,700 MW of renewables capacity in Uzbekistan. It has partnered with the authorities on a programme to deliver 2,000 MW of wind power through competitive bidding processes. The Karatau WPP project is the first project under this programme. Moreover, it is the first renewable energy project to be developed under the country’s Public Private Partnership Law. The project will also support women’s participation in the country’s renewable energy sector. The sponsor, ACWA Power, will increase access to market-relevant skills and employment opportunities for young women in the country by working in partnership with local technical institutes to introduce a new gender-responsive certified internship programme that will expand the local talent pool.
ACWA Power Wind Karatau FE LLC is a limited liability company incorporated in Uzbekistan and owned by ACWA Power Company, a Saudi Listed Joint Stock Company, an existing client of the EBRD.
The EBRD is a leading institutional investor in Uzbekistan, with more than €4 billion invested in 135 projects.