Expanding Uzbekistan’s wind energy sector

The OPEC Fund is boosting renewable energy in Uzbekistan. The development financier signed two US$20 million loan agreements with the Saudi developer ACWA Power for the construction and operation of the 500 MW Dzhankeldy wind farm and the 500 MW Bash wind power plant in the Bukhara region of the country. The new facilities will expand renewable energy generation capacity, reduce greenhouse gas emissions and diversify the energy mix. 

The financing for the Dzhankeldy wind farm will support the construction, operation and maintenance, as well as the development of 128 km of transmission infrastructure. The plant will generate 1,550 GWh of electricity annually. The Bash wind power plant will generate more than 1,650 GWh of electricity annually and projects include the construction and installation of 160 km of transmission infrastructure. Combined, the plants will reduce CO2 emissions by 1.8 billion tonnes. 

Both loans were financed by a consortium of international lenders including the European Bank for Reconstruction and Development (EBRD), Standard Chartered Bank, the French development financier Proparco, Germany’s development bank Deutsche Investitions- und Entwicklungsgesellschaft (DEG), the Industrial and Commercial Bank of China and the Asian Development Bank (ADB). 

OPEC Fund Director-General Abdulhamid Alkhalifa said: “We are happy to cooperate with the authorities as well as with our development and private sector partners on energy sector projects that will boost the share of renewables in energy generation and provide reliable and affordable clean energy.” 

Uzbekistan is one of the most energy-intensive countries in the world. The government forecasts the electricity demand to double by 2030. To satisfy these needs and to mitigate climate and energy security risks, the country plans to add 3 GW wind and 5 GW solar power capacities to its energy mix. 

Headquartered in Saudi Arabia, ACWA Power is a leading international developer and operator of power generation and water desalination facilities. The OPEC Fund and ACWA Power have previously cooperated on energy projects in Jordan (Zarqa), Egypt (Kom Ombo) and Uzbekistan (Sidarya). To date, the OPEC Fund has provided close to US$600 million public and private sector financing in support of Uzbekistan’s sustainable growth agenda in line with its country partnership strategy.