Masdar signs power purchase agreement with Uzbekistan

Masdar has signed a Power Purchase Agreement (PPA) and Government Support Agreement (GSA) with the Government of the Republic of Uzbekistan to design, finance, build and operate the country’s first public-private partnership (PPP) solar power plant.

The Ministry of Investments and Foreign Trade of Uzbekistan announced that Masdar had tendered the lowest tariff of US$2.679 cents per kilowatt-hour in the program’s competitive auction to develop the 100-megawatt (MW) utility-scale PV solar plant, which will be located in the Navoi region.

As a transaction advisor, the International Finance Corporation helped the Ministry of Investments and Foreign Trade and the Ministry of Energy to design and tender the PPP, which attracted more than 40 bidders, under its Scaling Solar program.

The signing ceremony highlighted Uzbekistan’s goal of developing 5 gigawatts (GW) of renewable energy by 2030. Under the IFC’s Scaling Solar program, Uzbekistan aims to install 1GW of solar PV power. 

Masdar will design, finance, build and operate the PV power plant in the Navoi region for 25 years. Construction will start in the second quarter of 2020, with commissioning scheduled for the second quarter of 2021.