Masdar secures funding for three solar projects in Uzbekistan

Abu Dhabi Future Energy Company, also known as Masdar, has secured funding for three solar photovoltaic (PV) projects it is developing in Uzbekistan.

The Abu Dhabi-based renewable energy group said funding for the projects is being provided by the Asian Development Bank, Asian Infrastructure Investment Bank, the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank.

EBRD said in a separate statement that it would provide a funding package of $205m towards the three greenfield solar power plants that are being developed by Masdar.

The Dutch Entrepreneurial Development Bank, FMO, and ILX are acting as B loan participants, Masdar said in a statement.

Masdar supports the energy transition

The company signed agreements with Uzbekistan’s Ministry of Investments, Industry and Trade together with the JSC National Electric Grid to design, finance, build and operate three utility-scale solar projects in 2021.

The clean energy projects include the 457 megawatts (MW) Sherabad Solar Project, and the Samarkand and Jizzakh solar projects, which have a capacity of 220 MW each. The projects have a combined capacity of around 900 MW, they can power more than one million homes and displace more than one million tonnes of carbon emissions each year.

We are excited to announce achieving financial close on three #SolarPV projects we are developing in #Uzbekistan??

Construction on the plants: will begin imminently ?
Combined capacity: around 900 MW⚡️

The largest solar development program in the region.
Swipe left ➡️ for more

— Masdar (@Masdar) April 6, 2023

Construction on the projects is expected to start imminently on the plants and they are expected to be operational by 2024. Masdar is already contributing to Uzbekistan’s clean energy objectives, with the 100 MW Nur Navoi Solar project – the country’s first independent power producer solar project that has been operational since 2021.

Last year, the company secured funding for the 500 MW Zarafshan wind project, Uzbekistan’s first utility-scale wind farm and currently the biggest in Central Asia. Masdar was also awarded the Bukhara Solar PV project, which includes 250 MW solar PV capacity and a 62 MW battery energy storage system in December 2022

Uzbekistan plans to develop 7 gigawatts (GW) of solar and 5 GW of wind capacity by 2030, as the country looks to meet 25 per cent of its power needs from renewable sources by that year.

Masdar’s strategy

Meanwhile, Masdar unveiled a new shareholding structure and additional focus on green hydrogen, making it one of the biggest clean energy companies. Abu Dhabi National Oil Company (ADNOC), TAQA and Abu Dhabi wealth fund Mubadala announced their shareholding in Masdar in December.

Read: Abu Dhabi’s ADNOC, TAQA and Mubadala complete deal to acquire Masdar stakes

TAQA holds a 43 per cent stake in the renewable company, Mubadala 33 per cent and ADNOC has a 24 per cent shareholding. To achieve its 100 GW renewable energy capacity target and production of one million tonnes of green hydrogen per annum annually by 2030, Masdar is a clean energy powerhouse that is spearheading the UAE’s Net Zero by 2050 Strategic Initiative and driving the global energy transition.

Masdar has made several acquisitions in power firms in places such as the US and Europe as the company consolidates its position as one of the world’s biggest renewable energy producers. Last year, the clean firm bought UK-based Arlington Energy, a developer of battery-energy storage and signed an MoU to buy a stake in a BP-led project to make green hydrogen in Teeside in the north of England.

The company is leading a consortium that will build a 10 GW wind plant in Egypt, an $11bn clean energy project that will start to produce power in around five years.

The renewable energy giant also has inked an agreement with the global development institution, International Finance Corporation, to explore areas of collaboration to support climate action for emerging markets.

Read: Masdar, IFC to jointly advance climate action in emerging markets