Uzbekistan plans to increase solar energy capacity by 5,000 MW, seeks more FDI

Uzbekistan is planning to build solar power plants with a total capacity of 5,000 MW within 10 years.

Projects are to be implemented with foreign direct investment. The ministry of energy with assistance from the World Bank, the Asian Development Bank (ADB) and the European Bank for Reconstruction and Development (EBRD) is conducting a competitive selection of investors to implement projects.  

By the end of next year, it plans to commission two solar power plants with a capacity of 100 MW each.

A public-private-partnership (PPP) project is being implemented with the participation of the International Finance Corporation (IFC). The institution is assisting in structuring and conducting tenders for solar energy projects.

"The initial stage of the international tender saw 23 companies from India, Spain, China, Norway, the United Arab Emirates, Russia, Saudi Arabia, France, South Africa, South Korea and Japan, of which 11 companies were prequalified," said Abdullajon Otaboev, a representative of the ministry of energy. Tender offers were provided by Acwa Power (Saudi Arabia), Jinko Power and Aljoimah Energy & Water Consortium (China/Saudi Arabia), Masdar (UAE), TBEA Xinjianing Sunoasis Co Ltd (China) and Total Eren (France).

Masdar won the first stage of the international tender with a tariff of 2.679 US cents per 1 kW.h of generated electricity.

The $5.1mn project is financed under a guarantee of the International Bank for Reconstruction and Development, as well as IFC loans of up to $41mn. The project will also be the first guarantee operation of the World Bank in Uzbekistan.