World Bank approves $380 M project for Uzbekistan’s clean energy transition
Uzbekistan, Tashkent: The Ministry of Energy of Uzbekistan has announced approval of a new $380 M project.
Image source: Gulfnews
Uzbekistan, Tashkent: The Ministry of Energy of Uzbekistan has announced approval of a new $380 M project.
The project will enhance the performance of the National Electric Grids of Uzbekistan (NEGU) and has been approved by the World Bank’s Board of Executive Directors.
“Uzbekistan has been working closely with the World Bank and other international institutions to open up the country’s power sector to private investment,” Uzbekistan’s Energy Minister Alisher Sultanov said. ‘This project, and the confidence of its backers in Uzbekistan, is testament to the reforms our country has implemented to date. This latest financing will help us reach our goal of 25 % of energy consumption deriving from renewable sources by 2030. It will also be a key component of Uzbekistan’s ambitious, wider strategy to develop environmentally friendly renewable sources of energy to meet our growing electricity demand,” he added.
According to the Uzbek Energy Ministry, the Electricity Sector Transformation and Resilient Transmission Project will ensure reliable energy supplies to millions of households and businesses across Uzbekistan. It is supported by $380 M in credit from the International Development Association (part of the World Bank Group), and a $43 M loan from the Green Climate Fund (GCF) under the Sustainable Renewables Risk Mitigation Initiative Facility.
The government of Uzbekistan will receive this financing at very low interest rates and a long repayment period, of up to 40 years. The GCF will also provide a $4 M grant to cover selected project activities.
The project aims to support Uzbekistan in its clean energy transition by improving the transmission network’s capacity to integrate renewable energy produced by the private sector, the ministry said, adding that the project will contribute to Uzbekistan’s plans to decarbonize its electricity sector, directly support the integration of 1,500 MW of renewable energy into the power grid – leading to further CO2 emissions reduction, and mobilize private investment into Uzbekistan’s renewable energy sector.
Source: Gulfnews