TASHKENT, Uzbekistan, December 23. The European Bank for Reconstruction and Development (EBRD) plans provision of a long-term senior loan of up to $140 million for the development, design, construction and operation of a 200MW solar photovoltaic power plant and 500 MWh battery energy storage system in Uzbekistan’s Tashkent region, Trend reports.
The financing will be provided to ACWA Power Riverside Solar LLC, a special purpose vehicle (the borrower) established in Uzbekistan, and fully owned by ACWA Power.
According to EBRD, the project will help to improve reliability of intermittent solar power generation in Uzbekistan by introducing battery storage.
“Successful implementation of the project will pave the way for broader implementation of renewable projects, helping to mitigate intermittence constrains of renewable energy sources capacity,” the report states.
The entire project cost is anticipated to be $546 million.
The EBRD states that the expected transition impact of the project will derive from the increased renewable energy generation and energy storage capacities, which will contribute to the transition to a low-carbon economy in a country that has a high reliance on thermal power generation.
Meanwhile, the EBRD approved its five-year country plan in 2018, specifying priority sectors for the Bank's initiatives in Uzbekistan.
According to the head of the EBRD office in Uzbekistan, Andi Aranitasi, those priorities include the enhancement of competitiveness by strengthening the role of the private sector’s role in the economy, as well as the promotion of green energy and resource solutions across sectors.
Aranitasi said support for increased regional and international cooperation and integration has also been one of the pillars of the Bank's cooperation with Uzbekistan.