Monday, 24, June, 2024

IFC has signed an agreement to support Uzbekistan as it develops a series of utility-scale wind farms, helping the country transition towards clean energy and meet a growing demand for electricity.

IFC will advise Uzbekistan as it structures a public-private partnership (PPP) to mobilize private sector experience and capital to construct and operate up to 500 megawatts wind power plants across Uzbekistan. The project will contribute to Uzbekistan’s target of generating 25 percent of its electricity from renewable sources by 2026.

Wind is one of the world’s fastest-growing and affordable sources of new power generation, with over 743 gigawatts of installed capacity. Uzbekistan has set a goal of developing five gigawatts of solar and three gigawatts of wind capacity by 2026.

“Uzbekistan’s energy sector has been on a steady path of reform,” said Jamshid Kuchkarov, Deputy Prime Minister of Uzbekistan. “We welcome this agreement as a further indication of IFC’s commitment to the country’s strategic drive to green our power sector portfolio in the coming years. The project will contribute to the government’s efforts to diversify Uzbekistan’s energy mix while increasing the capacity of its renewable energy.”

Hela Cheikhrouhou, IFC's Regional Vice President for the Middle East, Central Asia, Turkey, Afghanistan, and Pakistan, said: “Affordable, renewable energy is crucial for Uzbekistan’s future. It can be an engine of economic growth, while contributing to the global efforts to face the growing climate crisis.”

IFC has been advising the government of Uzbekistan on attracting private investments in the energy sector on transparent and competitive terms and in line with the highest environmental, social and governance standards since 2018. Supporting renewable energy projects and opening the sector to private investments is a pillar of IFC’s work in Uzbekistan and the Central Asia region.

The project is one of several competitive tenders in the energy sector being implemented by the government of Uzbekistan in partnership with IFC. For example, IFC helped tender out and finance a privately developed 100-megawatt solar power plant in the Navoi region, the country’s first utility-scale renewable energy facility that produces enough electricity to power more than 30,000 homes.

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