Uzbekistan Advances Solar Parks to Reduce Greenhouse Gas Emissions, Diversify Energy Mix

Tashkent, Uzbekistan, December 16, 2022—Uzbekistan announced the winning bidders for the construction and operation of solar plants in the regions of Bukhara, Namangan, and Khorezm, part of a groundbreaking effort by the country to ramp up its production of clean energy.

The solar parks, which will have a combined capacity of 500 megawatts, will help the country reduce its emissions of planet-warming greenhouse gases and reduce its reliance on natural gas. The new plants are part of the government of Uzbekistan's ambitious renewable energy strategy, which includes deploying up to 15 gigawatts of generating capacity by 2030.

As the lead transaction advisor for this project, IFC assisted Uzbekistan's Ministry of Energy, Ministry of Finance, and Ministry of Investment and Foreign Trade in designing the project and implementing a competitive international tender, which attracted nine total bids, and the winning bidders will develop the solar parks through public-private partnership (PPP).

"This project is part of an effort by the Government of Uzbekistan to increase renewable energy generation through the development of privately financed and operated renewable energy projects," said Jurabek Mirzamahmudov, Minister of Energy of Uzbekistan. "It will also help the country achieve its overall goals of lowering the cost of energy for the benefit of the population, decreasing its dependence on fossil fuel, and reducing overall carbon-dioxide emissions in energy production."

The winning bidders are expected to design, finance, build, operate and maintain the photovoltaic solar parks:

• Abu Dhabi Future Energy Company PJSC (Masdar) was identified as the preferred bidder for the 250-megawatt project in the Bukhara region with a bid to supply solar power at ¢ 3.044 per kilowatt hour and to supply Battery Energy Storage System with a capacity of 63 MW at USD 16.5 per MW/h. This plant will be developed with integrated battery energy storage for the first time in Uzbekistan. 

• Consortium GP Power – Power China was identified as the preferred bidder for the 150-megawatt project in the Namangan region with a bid to supply solar power at ¢ 4.828 per kilowatt hour.
   
• Voltalia was identified as the preferred bidder for the 100-megawatt project in the Khorezm region with a bid to supply solar power at ¢ 2.888 per kilowatt hour. 
   
  

"These new solar parks, which will help Uzbekistan reduce its dependence on natural gas and counter climate change, are a testament to the continued commitment and forward thinking of the Uzbek government, especially as the world navigates an energy crisis," said Muneer Ferozie, IFC's Regional Manager and Head for PPP Transaction Advisory. "We are proud to have a strategic partnership with the Government of Uzbekistan and assist in this journey of attracting more international private investment in the country and assist in long-term economic development."

The project is being implemented in partnership with the government of Germany. Once the final contract is negotiated and the project agreements are signed, IFC's advisory assistance for the project will end. The work is part of a larger effort to support the development of Uzbekistan's private sector, whose growth is considered key to combating poverty and creating economic opportunities. 

About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org. 

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