EBRD to back another 50-MW Kazakh solar project

The European Bank for Reconstruction and Development (EBRD) has announced the signature of a mandate letter for the co-financing of a new solar plant in Kazakhstan near the world-famous space centre in Baikonur.

The Baikonur Solar park, with a capacity of up to 50 MW, will be located in the Kyzylorda region. The clean energy will feed the neighbouring high-voltage lines that serve the nearby area including the city of Kyzylorda.

The solar park is to be build by a joint venture between UG Energy Ltd, a privately owned investment company registered in the United Kingdom, and Samruk-Kazyna Invest, a division of the sovereign wealth fund.

In addition, the EBRD and the government of Kazakhstan also signed a Memorandum of Understanding (MoU) which will open the country’s renewable energy market to a wider range of investors working under the EBRD’s dedicated framework.

The agreements reached in the MoU represent a major step forward for renewables in a country with a nascent renewables sector but with ambitious targets for a green economy and clean energy.

The MoU was signed by the Minister of Energy of Kazakhstan, Kanat Bozumbayev, and EBRD Director, Head of Kazakhstan Agris Preimanis.

Recently, we reported that the EBRD financed the 50 MW Burnoye solar-1 plant and the 50 MW Burnoye Solar-2 project. The first project will be co-financed by the EBRD and the Clean Technology Fund (CTF). EBRD will lend €70 million (US$79 million) whist the Clean Technology Fund (CTF) will lend €13.8 million (US$15.6 million). For the Burnoye Solar-2, EBRD will provide a loan in Kazakh tenge in the amount equivalent to up to US$44.5 million. CTF is also participating with a US$10 million loan. 

Burnoye Solar-1 and 2 are expected to result in CO2 emission savings of 150,000 tonnes annually, neutralising carbon emissions from 30 MW of domestic coal-fired power plants. Samruk Kazyna United Green Energy Ltd is also developing these projects.