In Uzbekistan, Proparco finances two wind farms to boost the development of renewable energy
published on 14 December 2022
Proparco, alongside several development finance institutions and commercial lenders including EBRD and DEG, is participating in the financing of the Bash and Dzhankeldy projects, two onshore wind farms developed by ACWA Power in Uzbekistan, by providing USD 80m (USD 40m per project). Together, the two wind farms represent 1GW of new installed capacity and will avoid greenhouse gas emissions estimated at 1 820 000 tCO2e/year.
Electricity production in Uzbekistan is largely generated by thermal power plants, mainly gas-fired, and coal-fired power plants. The electricity sector is the second largest emitting sector of greenhouse gases (GHG) in the country. Diversification of the electricity mix is therefore a major challenge of a low carbon trajectory.
“Proparco is proud to support the development of the Bash and Dzhankeldy wind farms in Uzbekistan. These two large-scale power plants will play a significant role in the energy transition of the country, and help meeting the growing electricity demand while improving its resilience to climate change” said Anne Gautier, head of Proparco’s Power and Digital Division for this region.
After a first solar PV plant financing in 2021, Bash and Dzhankeldy are the second and third financings provided by Proparco to the Uzbek renewable energy sector. These projects are part of a larger strategic support from the AFD group to the Uzbek energy transition.
The Bash and Dzhankeldy projects will consist in the construction and operation of two 500MW onshore wind farms, the first one located 60km north-west of Navoi, and the second one 160km north-west of the city of Bukhara. The projects will have a significant contribution to the Government of Uzbekistan’s objective to reach 5 GW of installed wind power capacity by 2030.
Together, the two wind farms will avoid greenhouse gas emissions estimated at 1,820,000 tCO2e/year. The projects are expected to create nearly 2,530 jobs on the long run, and give a better access to electricity to nearly 465,000 peoples.
