BAKU, Azerbaijan, June 15. The European Bank for Reconstruction and Development (EBRD) has provided financing for the implementation of a wind power plant project with a capacity of 100 MW, which will be developed, constructed, and operated in the Karatau mountain region of the Qorao'zak District in Karakalpakstan, Republic of Uzbekistan, Trend reports.
As the EBRD reported, to finance the project, a newly established special purpose vehicle in Uzbekistan will receive long-term senior debt of up to $19.3 million. The project sponsor is Saudi Arabia's ACWA Power.
By adding 100 MW of wind generation capacity to the Uzbekistan power system, the project aligns with the government's strategic priority of increasing the share of renewable energy sources in the national energy mix. It supports the country's transition towards a low-carbon economy. Additionally, the project will have significant environmental benefits, estimated to save more than 178,000 tons of CO2 emissions annually.
The total project costs are estimated at $118.1 million, covering expenses related to engineering, procurement, construction, non-EPC elements, and financing. Apart from the EBRD, several other international financial institutions are expected to provide support for the project.