 |
| |
Uzbekistan's Wind Energy Sector Gets $40mn Boost From OPEC Fund | |
| Sumita Pawar |
According to the news, theOPEC Fund for International Development (OPEC Fund) has entered into two separate loan agreements worth $20 million each with ACWA Power.
The funds will be used to support the construction and operation of two wind power plants: the 500 MW Dzhankeldy wind farm and the 500 MW Bash wind power plant, both located in the Bukhara region of Uzbekistan.
These new facilities will contribute to the country’s renewable energy generation capacity while also reducing greenhouse gas emissions and diversifying its energy mix.
 |
According to the report, the loan agreement for the Dzhankeldy wind farm will support the development of the plant’s infrastructure, including its construction, operation, and maintenance, as well as the development of 128 km of transmission infrastructure. The plant is expected to generate 1,550 GWh of electricity annually.
The Bash wind power plant, on the other hand, will generate more than 1,650 GWh of electricity annually and will include the construction and installation of 160 km of transmission infrastructure. Together, the two plants are expected to reduce CO2 emissions by 1.8 billion metric tonnes.
The financing for both projects was provided through a consortium of international lenders, with the European Bank for Reconstruction and Development (EBRD) serving as the technical bank and Standard Chartered Bank acting as the documentation bank.
The consortium also includes the French development financier Proparco, Germany’s development bank Deutsche Investitions- und Entwicklungsgesellschaft (DEG), the Industrial and Commercial Bank of China, and the Asian Development Bank (ADB).
OPEC Fund Director-General Dr. Abdulhamid Alkhalifa said, "Increasing private sector participation is key to supporting Uzbekistan’s ambitious energy transition. We are happy to cooperate with the authorities as well as with our development and private sector partners on energy sector projects that will boost the share of renewables in energy generation and provide reliable and affordable clean energy."
Furthermore, as the report mentioned, Uzbekistan is one of the most energy-intensive countries in the world. The government forecasts the electricity demand to double by 2030. To meet this increasing energy demand and to mitigate climate and energy security risks, the country plans to add 3 GW of wind and 5 GW of solar power capacities to its energy mix.
In the last decade, Uzbekistan has introduced a series of reforms to decarbonize and liberalise the energy sector and to create an environment conducive to private sector investment.
ACWA Power is a leading international developer and operator of power generation and water desalination facilities. The company is based in Saudi Arabia.The OPEC Fund and ACWA Power have previously cooperated on energy projects in Jordan (Zarga), Egypt (Kom Ombo), and Uzbekistan (Sidarya).
To date, the OPEC Fund has provided close to US$600 million in public and private sector financing in support of Uzbekistan’s sustainable growth agenda in line with its country partnership strategy.
Supported by grants, this funding has helped the sustainable development of the energy, water and sanitation, agriculture, transport, education, and financial sectors, with a focus on small and medium-sized enterprises, concluded the report.