The Japan International Cooperation Agency (JICA) has signed a project finance loan agreement with Shamol Zarafshan Energy Foreign Enterprise Limited Liability Company, which is implementing a wind power generation project in the Republic of Uzbekistan. This is the first project to be implemented in Uzbekistan since JICA resumed its overseas investment and financing operations, and will be co-financed by the International Finance Corporation (IFC), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), Natixis and First Abu Dhabi Bank.
Uzbekistan’s power source mix is highly environmentally burdensome, with thermal power generation using the country’s abundant natural gas and coal at approximately 92.5%, and hydropower generation at approximately 7.5% (IEA estimate for 2020). In light of this situation, the government of Uzbekistan is working to promote renewable energy in order to comply with the Paris Agreement and to increase the share of renewable energy in the country’s power supply to 25% by 2030. In addition, demand for electricity in Uzbekistan is exceeding supply, and more electricity is needed. This project will contribute to SDGs (Sustainable Development Goals) Goal 7 (Access to Energy), 13 (Climate Change), and 17 (Partnership) by increasing and stabilizing the country’s electricity supply through the construction of new wind power generation facilities.
Through this project, a large-scale wind power generation facility (500 MWdp) will be constructed and operated by a private company for the first time in Uzbekistan. The sponsor, Abu Dhabi Future Energy Company PJSC – Masdar, is one of the largest renewable energy power producers in the Middle East, with operations in over 40 countries worldwide and extensive experience. It is expected that this project will serve as a model case to attract private sector investment for subsequent similar projects in Uzbekistan and the Central Asia and Caucasus region.
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