TASHKENT, December 23, 2024 - The World Bank has approved $3.5 million in financing for Uzbekistan in the form of a payment guarantee to support the country's development of renewable energy. This support will secure the obligations of the state-owned National Electric Grid of Uzbekistan JSC to purchase electricity from a new 100-megawatt (MW) solar power plant to be constructed and operated by Voltalia (France) in the Khorezm region.
The solar plant is scheduled for commissioning in November 2025. Spanning 177 hectares, it will generate over 240 gigawatt-hours of renewable energy annually. The plant is expected to reduce CO₂ emissions by more than 230,000 metric tons each year and produce enough clean energy to supply approximately 60,000 households. This project will support Uzbekistan's efforts to increase clean energy production and advance its transition to a green economy.
"The World Bank Group supports Uzbekistan in meeting its energy needs and expanding renewable energy to reach 25 GW of capacity, covering 40% of the country's electricity consumption by 2030 as stated in the state program "Uzbekistan - 2030," said Tatiana Proskuryakova, the World Bank Regional Director for Central Asia. "We are pleased that the solar plant in the Khorezm region, backed by the Bank's payment guarantee, will bring new private sector players to diversify the country's renewable energy sector."
The solar power plant project will be implemented by Sarimay Foreign Enterprise LLC, a project company owned by Voltalia. It will oversee the development, financing, construction, ownership, and operation of the solar plant. Upon commissioning, the project company will sell electricity to the state-owned National Electric Grid of Uzbekistan JSC (NEGU) under a 25-year Power Purchase Agreement signed between the two parties.
The World Bank's payment guarantee of up to $3.5 million will secure the obligations of NEGU to purchase electricity from Sarimay Foreign Enterprise LLC. The guarantee has also facilitated the mobilization of $80 million in capital investment, including a financing package exceeding $54 million provided by the European Bank for Reconstruction and Development (EBRD), to implement this project in the Khorezm region.
"Since 2020, the World Bank and IFC, both part of the World Bank Group, have supported the development of 1,000 MW of solar and 500 MW of wind energy in Uzbekistan. We have provided payment guarantees, financing, advisory services, and technical assistance, while also attracting private sector investments to help the government advance its renewable energy projects," said Ferhat Esen, the World Bank Senior Energy Specialist and Task Team Leader of the Uzbekistan Guarantee Program.
The World Bank Group-supported projects include the first 100 MW solar power plant in Uzbekistan located in the Navoi region (operational since 2021), 440 MW solar power plants in the Samarkand and Jizzakh regions (operational since 2024), the first 500 MW wind power plant in Uzbekistan located in the Navoi region (under construction), and a 250 MW solar power plant with a 63 MW/126 MWh battery energy storage system (BESS) in the Bukhara region (under construction). The BESS is the first of its kind in Central Asia and the first globally to benefit from a World Bank guarantee for a BESS facility.
