ADB to allocate $200 million for solar energy projects in Uzbekistan

Business Materials 21 February 2012 14:53 (UTC +04:00)

Uzbekistan, Tashkent, Feb.21 /Trend D.Azizov/

The Asian Development Bank (ADB) will allocate loans totalling $200 million to develop and implement projects for the development of solar energy from 2012-2015 in Uzbekistan, SJSC Uzbekenergo told Trend.

The government and ADB signed a memorandum on establishing the International Institute for Solar Energy in Uzbekistan last week. The objectives will include the development of specific projects in the field of solar energy based on scientifically proven calculations.

ADB allocated a grant of $1.5 million to Uzbekenergo in December 2011to develop a programme for the development of solar energy in Uzbekistan up to the end of the 2012. The project will prepare a feasibility study of six projects.

Earlier it was reported that Uzbekenergo plans to start designing the solar power plant this year with a capacity of 50 MW and generation of 110 million kWh of electricity per year in the Tashkent region. The construction period is two years.

Funding for the project with estimated cost of $ 250 million will be provided through the ADB loans and Uzbek side funds.

The President of the Russian company LUKOIL Vagit Alekperov said his firm together with the Uzbekistan government and ADB began working on designing the solar power plants in September 2011. The power of the first phase of the station is 100 MW. The cost and timing of the project is unknown.

Currently in Uzbekistan's energy system, 45 power stations with a total capacity of 12,400 MW operate including 16 Uzbekenergo power stations with a total capacity of 12, 004 MW.

The rest of the electricity generated by the autonomous thermal power industry and small hydropower plants belonging to the Ministry of Agriculture and Water Resources. The potential for electricity production is 56-57 billion kWh.

Uzbekistan has been a member of the ADB since 1995.The Bank approved lending of 35 joint projects in education and health services, modernisation of generating capacity and energy infrastructure, rail and road infrastructure, public utilities, agriculture, financial sector, with a total project cost of over $8.6 billion with a share of ADB financing of over $3.8 billion.