17:55 / 21.05.2024

Masdar secures $159 million for solar power plant construction in Bukhara region

The 250 MW power plant and storage project is financed by IFC, ADB, the Netherlands, and Japan.

Masdar has attracted loans from several international organizations for the construction of a photovoltaic power station and battery complex in the Bukhara region.

The World Bank Group has entered into an agreement package with the UAE-based company and the government of Uzbekistan. Under these agreements, the International Finance Corporation (IFC), a member of the group, will allocate $53 million to the project.

Of this amount, $20 million will be provided within the joint IFC and Government of Canada program for financing climate protection initiatives. The World Bank will also provide Uzbekistan with a financial guarantee of $12 million.

Masdar will receive interest rate swaps from IFC to manage risks associated with loan rates. IFC's Director for Turkey and Central Asia, Vibke Schloemer, highlighted the project's role in ensuring stable electricity supplies and the development of green energy.

Additionally, the Asian Development Bank (ADB) has agreed with Masdar on a loan of $46.5 million, which includes $26.5 million from the bank's ordinary capital resources and $20 million from the targeted private infrastructure fund for developing Asian countries.

The Entrepreneurial Development Bank of the Netherlands (FMO) and the Japan International Cooperation Agency (JICA) are also participating in the project's financing, bringing the total funding amount to $159 million.

The tender for the construction of a 250 MW solar power plant in the Alat district of Bukhara region took place in December 2022. Masdar offered the lowest price per kilowatt-hour of energy — 3.044 cents.

The project includes a 63 MW (126 MWh) electricity storage system, a 20 kV substation, and 3.1 km of transmission lines for connection to the general grid. The solar power plant is expected to provide electricity to 55 thousand households.