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Uzbekistan to Build New Solar Power Plant with World Bank Support
The solar power plant is scheduled to be commissioned in November 2025. It will be located on an area of 177 hectares and annually produce more than 240 gigawatt-hours of renewable energy. Its operation is expected to reduce carbon dioxide emissions by more than 230 thousand tons per year and provide clean energy to about 60 thousand households. The project will be a significant contribution to the country's efforts to increase clean energy production and transition to a "green" economy.
“The World Bank Group is supporting Uzbekistan in meeting its energy needs and increasing the share of renewable energy to 25 GW by 2030, which will account for 40% of the country’s total electricity consumption by the end of the decade, in line with the Uzbekistan 2030 strategy,” said Tatyana Proskuryakova, World Bank Regional Director for Central Asia. “We are pleased that the World Bank’s bank guarantee for the Khorezm solar power plant project has helped attract new private investors to the renewable energy sector. This has helped diversify the industry and attract additional players to the market, which brings significant benefits to the country.”
The solar power plant project will be implemented by Sarimay Foreign Enterprise LLC, a subsidiary of Voltalia. The company will be responsible for the development, financing, construction, and operation of the facility. Once operational, Sarimay Foreign Enterprise LLC will sell the electricity generated by the plant to the state-owned JSC National Electric Grids of Uzbekistan. This is envisaged by a 25-year power purchase agreement between the two parties.
A bank guarantee of up to $3.5 million provided by the World Bank will ensure the fulfillment of payment obligations of JSC National Electric Grids of Uzbekistan for the purchase of electricity from Sarimay Foreign Enterprise LLC. The guarantee also helped attract additional capital investments of $80 million, including more than $54 million in financing from the European Bank for Reconstruction and Development (EBRD), necessary for the implementation of the project in the Khorezm region.
“Since 2020, the World Bank and the International Finance Corporation (IFC), members of the World Bank Group, have been supporting the Government of Uzbekistan’s efforts to create 1,000 MW of solar and 500 MW of wind energy capacity. To achieve these goals, we provided bank guarantees, financial resources, advisory services, technical assistance, and also helped attract private investment for the implementation of renewable energy projects,” said Ferhat Esen, Senior Energy Specialist at the World Bank and Team Leader for Bank Guarantees in the Energy Sector of Uzbekistan.
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