World Bank Boosts Uzbekistan's Solar Initiative with Million-Dollar Guarantee

The World Bank has given the green light for a payment guarantee of $3.5 million to promote Uzbekistan's renewable energy sector. This support is directed at the state-owned company National Electric Grid of Uzbekistan, which has committed to purchasing electricity from a new solar power plant in the Khorezm region. This facility, operated by Voltalia, is scheduled to commence operations in November 2025. The solar power plant in Khorezm covers 177 hectares and is expected to produce over 240 GWh of renewable energy annually. This would reduce CO₂ emissions by more than 230,000 tons per year and provide clean electricity to around 60,000 households. Tatiana Proskuryakova, the World Bank's Regional Director for Central Asia, emphasized the World Bank Group's support in helping Uzbekistan achieve its energy goals. By 2030, the share of renewable energy in the country's power supply is to increase to 40%. The implementation of the project is the responsibility of the Voltalia subsidiary Sarimay Foreign Enterprise, which is overseeing the entire development process, from financing to construction and operation. After commissioning, the project company will enter into a 25-year power purchase agreement with the National Electric Grid of Uzbekistan to sell the generated electricity. In addition to the World Bank's guarantee, the project has mobilized additional capital of $80 million, including a financial contribution of over $54 million from the European Bank for Reconstruction and Development. Previously, the World Bank had supported other projects, such as the 100 MW solar power plant in the Navoi region and solar installations in the Samarkand and Jizzakh regions. Current projects in planning include a 500 MW wind farm in the Navoi region and a 250 MW solar facility with a 63 MW/126 MWh battery energy storage system in the Bukhara region.