Abu Dhabi-based renewable energy company Masdar, has achieved financial close for its 500-megawatt (MW) Zarafshan wind project in Uzbekistan.
This is the first utility-scale wind farm in the central Asian country, after Masdar entered into bilateral agreements with the Uzbekistan government in 2020.
The project is expected to begin commercial operations by the end of 2024, and can power over 500,000 homes.
“Uzbekistan is aiming to derive 25 per cent of its energy from renewable sources by 2026, and we are grateful to Masdar and financial institutions who are contributing to this goal through solar, wind, and other renewable energy projects,” Shukhrat Vafaev, deputy minister of investments and foreign trade said.
Vafaev added the country will continue to work with lenders, development partners, and the private sector to promote renewable energy solutions, fuelling Uzbekistan’s green growth.
Zarafshan wind project is expected to attract foreign direct investment of more than $600 million, and is part of Uzbekistan’s effort to meet 25 percent of its electricity needs from renewable sources by the end of the decade.
Anchor lenders include the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), the Asian Development Bank (ADB), and Japan International Cooperation Agency (JICA).
“Dutch Entrepreneurial Development Bank will act as B lender, while Etihad Credit Insurance, Natixis and First Abu Dhabi Bank, are providing credit-insured lending for the project,” WAM said.
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