EBRD, EIB and PROPARCO Provide Funding for Total Eren’s PV Plant in Uzbekistan

The government of Uzbekistan’s plans to develop 8 GW of solar and wind capacity by 2030 have received a major boost following the approval of an €87.4 million financing package jointly organized by, the European Bank for Reconstruction and Development (EBRD), the European investment Bank(EIB) and PROPARCO, a subsidiary of Agence Française de Développement. The funds will be used to construct and put into operation a 100 MW photovoltaic solar power plant near the city of Samarkand.
EBRD, EIB and PROPARCO Provide Funding for Total Eren’s PV Plant in Uzbekistan
Sebastian Ganso from Pixabay

The package will be provided to project developer Tutly Solar LLC, which is fully owned by Total Eren, a leading France-based independent power producer (IPP) from renewable energy sources (mainly solar and wind), active globally. It will consist of an EIB loan of €43.7 million and two loans of approximately €21.8 million each from the EBRD and PROPARCO.

The construction phase is estimated to be completed within 12 months. The Plant will operate for at least 25 years after which it will be either transferred to the Government or decommissioned and the land will be returned to its original state. Construction of the plant is expected to start in Q1 2021, with commissioning of the plant expected in Q4 2021.  The Land is owned by the State of Uzbekistan and has been leased to the project owner for the duration of the Plant’s operation.

This is one of the first private-sector renewable energy projects in the country. It will help diversify the energy mix, which is currently dominated by fossil fuel-fired power stations, and increase generation capacity and the reliability of supply to address growing demand for electricity. Once implemented, the project will help reduce annual greenhouse gas emissions by 160,000 tons of CO2 equivalent and generate an additional 270 GWh of electricity for thousands of inhabitants of Central Asia’s most populated country.

The project will thus contribute to priorities identified in the United Nations’ 2030 Sustainable Development Goals (SDGs): affordable and clean energy; decent work and economic growth; industry, innovation and infrastructure; and climate action.

After the commissioning, the electricity produced by Tutly Solar will be sold to the operator, National Electric Networks of Uzbekistan, through a 25-year power-purchasing agreement. The project, which involves Total Eren as one of the first Independent Power Producers in the country, will develop Uzbekistan’s huge solar potential.

“PROPARCO is pleased to contribute to financing the Tutly solar power plant, a unique project developed by Total Eren and our first project in the renewable energy sector of Uzbekistan. This financing is fully in line with AFD Group’s ‘100 per cent Paris Agreement’ commitment,” said Anne Gautier, head of PROPARCO’s Power and Digital Division for this region.

EBRD Managing Director, Sustainable Infrastructure Group, Nandita Parshad commented, “We are very proud to co-finance this landmark project conceived by Total Eren. It is contributing to Uzbekistan’s long-term decarbonisation strategy, which is being developed jointly with the EBRD and is designed to achieve carbon neutrality of the power sector by 2050, as well as to align development of the country’s power sector with commitments under the Paris Agreement.”

Teresa Czerwińska, Vice-President at EIB, Responsible for operations in Uzbekistan, stated, “With Climate Action at the heart of the EIB investment activities, we are proud to support development of Tutly solar plant in Uzbekistan. The plant will make an important contribution to both country’s sustainable economic and social development, and allow Uzbekistan to reinforce the global fight against the climate change. This makes Tutly an investment in local economic development and the future of our planet. I am grateful to our partners from the European Union, the EBRD and Total Eren for the far-sighted partnership for a safe and prosperous future of Uzbekistan, Central Asia and the world.”

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