Uzbekistan will construct a new solar power plant with the support of the World Bank.

“The World Bank Group is assisting Uzbekistan in meeting its energy needs and increasing the share of renewable energy sources to 25 GW by 2030, which will account for 40% of the total electricity consumption in the country by the end of the decade, in line with the 'Uzbekistan - 2030' strategy,” noted Tatyana Proskuryakova, the World Bank's regional director for Central Asia. “We are pleased that the World Bank's guarantee, provided as part of the solar power plant project in the Khorezm region, has attracted new private investors to the renewable energy sector. This has helped diversify the industry and bring additional players to the market, benefiting the country significantly.”

The solar power plant project will be implemented by Sarimay Foreign Enterprise LLC, a subsidiary of Voltalia. The company will be responsible for the design, financing, construction, and operation of the facility. Once operational, Sarimay Foreign Enterprise LLC will sell the electricity generated by the plant to the state company JSC “National Electric Networks of Uzbekistan.” This is stipulated in a 25-year power purchase agreement between the two parties.

The bank guarantee of up to $3.5 million provided by the World Bank will ensure the fulfillment of payment obligations by JSC “National Electric Networks of Uzbekistan” for purchasing electricity from Sarimay Foreign Enterprise LLC. This guarantee has also facilitated attracting additional capital investments of $80 million, including over $54 million in financing from the European Bank for Reconstruction and Development (EBRD), necessary for the implementation of the project in the Khorezm region.

“Since 2020, the World Bank and the International Finance Corporation (IFC), part of the World Bank Group, have supported the efforts of the Uzbek government to establish 1000 MW of solar and 500 MW of wind energy capacity. To achieve these goals, we have provided bank guarantees, financial resources, consulting services, technical assistance, and facilitated the attraction of private investments for renewable energy projects,” said Ferhat Esen, senior energy specialist at the World Bank and head of the bank guarantees working group in Uzbekistan's energy sector.