World Bank to buy $12 million worth of solar power from Uzbekistan

According to the press service of the bank, The Board of Executive Directors of the World Bank has approved $12 million in financing for the project "Expansion of Solar Power in Uzbekistan-2".

It is noted that due to the project it is possible to expand production capacities of environmentally clean and renewable energy in the country. It will also contribute to the government's plans on transition to green economy and the process of decarbonisation (reduction of carbon dioxide emissions) in the energy sector.

The Uzbekistan Solar Energy Expansion Project-2, presented in 2023, builds on the success of the Navoi project. Electricity generation will be increased by launching solar power plants with a total capacity of 440 MW. The World Bank is providing bank guarantees of up to USD 6 million for each (up to a total of USD 12 million) facility to be built in the two territories to the joint-stock company National Electric Grid of Uzbekistan.

In Uzbekistan, two new solar power plants of 220 MW capacity each will be built in May 2021 in Kattakorgan district of Samarkand region and Gallaorol district of Jizzakh region under public-private partnership (PPP). UAE in the field of renewable energy, Masdar won the tender.

As a reminder, in 2019 Uzbekistan became the first country outside Africa to join the World Bank Group's (WBG) Solar Power Expansion programme. As part of the programme, a 100MW solar power plant, Uzbekistan Solar Power Expansion 1, was commissioned in Navoi Region. At that time, the World Bank provided a bank guarantee to meet obligations to purchase the electricity generated by this plant. The International Finance Corporation (IFC) provided advisory services in organising the tender and financing the implementation of the project.