Masdar, a clean energy leader, has reached financial close on a package worth more than $225 million for the Guzar 300-megawatt (MW) solar power plant and 75-megawatt-hour (MWh) battery energy storage system (BESS) in Kashkadarya, Uzbekistan.
The European Bank for
Reconstruction and Development (EBRD) will provide up to $195.5 million,
including financing from Canada and Finland under the Special Fund for the High
Impact Partnership on Climate Action (HIPCA), and the Japan-EBRD Cooperation
Fund.
The Asian Development
Bank (ADB) is providing financing of $30 million, including from the Leading
Asia’s Private Infrastructure Fund 2 (LEAP 2) and the Canadian Climate and
Nature Fund for the Private Sector in Asia (CANPA) under its administration.
Abu Dhabi Commercial Bank provided hedging on the transaction.
The financial close
was marked by a signing ceremony held in the presence of Suhail Al Mazrouei,
Minister of Energy and Infrastructure; Jamshid Khodjaev, Deputy Prime Minister
of Uzbekistan; Jurabek Mirzamahmudov, Minister of Energy of Uzbekistan; and
Mohamed Al Ramahi, CEO, Masdar, at the Masdar Pavilion during Abu Dhabi
Sustainability Week. Masdar COO Abdulaziz Alobaidli signed the agreement,
alongside representatives of the EBRD, ADB and ADCB.
Al Ramahi said: “We
are delighted to have achieved financial close on another significant renewable
energy project in Uzbekistan. Since 2021, Masdar has been proud to collaborate
with our partners in Uzbekistan to deliver over 2 gigawatts (GW) of renewables
capacity to support the country’s ambitious clean energy goals.
Uzbekistan’s abundant
wind and solar resources, allied to its supportive regulatory regime, make this
an attractive market for Masdar as we pursue our ambitious growth strategy to
reach 100GW global capacity by 2030.”
Masdar will design,
build, and operate the solar and BESS project under the terms of the
Public-Private Partnership agreement it signed with JSC National Electric Grid
of Uzbekistan.
Once operational, the
project will avoid more than 400,000 tonnes of carbon dioxide annually and
provide enough electricity to power the equivalent of 60,000 homes,
contributing to Uzbekistan’s target of generating 54 percent of power from
renewables by 2030.
Masdar’s investment to
date in Uzbekistan exceeds $2 billion, having developed the first utility-scale
solar project in the country, the 100MW Nur Navoi plant.
Most recently, Masdar
signed a Battery Storage Services Agreement with JSC Uzenergosotish last
November to develop the nation’s largest standalone BESS project, with a
capacity of 300MW/600MWh in the Navoi Region of Uzbekistan.
The CIS region is a
strategic market for Masdar as it targets a global portfolio capacity of 100GW
by 2030. Beyond its footprint in Uzbekistan, the company has an active presence
across Azerbaijan, Kazakhstan, and elsewhere. -TradeArabia News Service
