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OPEC Fund, in collaboration with ACWA Power, has signed two separate loan agreements worth US$20 million each to support the construction and operation of two wind farms in Uzbekistan, Dzhankeldy wind farm and Bash wind power plant, with a combined capacity of 1 GW. The project will help Uzbekistan to reduce greenhouse gas emissions, increase renewable energy generation capacity and diversify its energy mix.
The Dzhankeldy wind farm will generate 1,550 GWh of electricity per year, and the Bash wind power plant will generate more than 1,650 GWh of electricity annually, reducing CO2 emissions by 1.8 billion tonnes. The financing will also cover the development and installation of 128 km and 160 km transmission infrastructures for the two facilities, respectively.
The loan packages were financed through a consortium of international lenders, including the European Bank for Reconstruction and Development (EBRD), Proparco, Deutsche Investitions- und Entwicklungsgesellschaft (DEG), the Industrial and Commercial Bank of China, and the Asian Development Bank (ADB), with Standard Chartered Bank acting as the documentation bank and EBRD as the technical bank.
Director-General of OPEC Fund, Dr. Abdulhamid Alkhalifa, said the collaboration with ACWA Power and other consortium members is critical to support Uzbekistan’s ambitious energy transition. He also emphasized the need for private sector participation to help diversify the country’s energy mix, boost the share of renewables in energy generation, and provide reliable and affordable clean energy.
Uzbekistan is one of the most energy-intensive countries globally, and the government predicts that electricity demand will double by 2030. The country aims to add 3GW wind and 5GW solar power capacities to its energy mix to meet the increasing demand while mitigating climate and energy security risks. The Uzbekistan government has introduced several reforms in the last decade to decarbonize and liberalize the energy sector, creating a conducive environment for private sector investment.
The OPEC Fund has provided nearly US$600 million in public and private sector financing to support Uzbekistan’s sustainable growth agenda, with a focus on the energy, water and sanitation, agriculture, transport, education, and financial sectors. This funding, supported by grants, has helped the sustainable development of small and medium-sized enterprises.
ACWA Power is a leading international developer and operator of power generation and water desalination facilities, and the OPEC Fund and ACWA Power have previously cooperated on energy projects in Jordan, Egypt, and Uzbekistan.
The OPEC Fund for International Development is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. It works with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries worldwide. Since its establishment in 1976, the OPEC Fund has committed more than US$24 billion to development projects in over 125 countries, with an estimated total project cost of US$187 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA/Outlook Positive by S&P.