Tuesday, 25, June, 2024

IFC is providing a $150 million financing package, and helped mobilize more than $1 billion in private financing, for a modern thermal power plant in Uzbekistan’s Syrdarya region. The plant will help meet the country’s growing demand for energy while supporting its decarbonization and energy transition efforts.

As lead transaction advisor for the government of Uzbekistan, IFC helped structure the public-private partnership (PPP) for the project through a transparent, competitive international tender—the first for a thermal power plant in the country. The Japan Bank for International Cooperation and Japanese Nippon Export and Investment Insurance also co-financed the project, committing $655 million.

The 1,580-megawatt plant will provide more efficient, and cost-competitive electricity to more than 3 million people, meeting an estimated 17 percent of demand and comprising 9.5 percent of installed power capacity when complete. With an efficiency rating of over 60 percent, it will also be twice as efficient as current production and avoid up to 2.8 million tons of greenhouse gas emissions annually by displacing aging plants. The electricity fully generated from domestic natural gas will be sold to the National Electric Grid of Uzbekistan.

“To accelerate the clean energy transition, we need modern, efficient, and flexible power plants that can help optimize our energy systems by balancing and scaling up variable renewable energy capacity. The Syrdarya-2 plant will support this transition, providing a reliable and cost-efficient source of electricity while helping to decarbonize the sector,” said Jurabek Mirzamakhmudov, Minister of Energy of Uzbekistan.

Uzbekistan’s electricity generation is currently dominated by gas, with an inefficient aging fleet of thermal plants near the end of their operating life. The new highly efficient plant will help decrease gas consumption, enhance renewable energy integration, and improve power generation resilience. It supports the country’s plan to transition towards decarbonization by 2050 and is fully aligned with Uzbekistan’s Nationally Determined Contributions and the Paris Agreement.

“An efficient, reliable, and affordable electricity supply is a prerequisite for every country,” said Wiebke Schloemer, IFC Director for Türkiye and Central Asia. “This project harnesses private sector capital and expertise to build the resilience and competitiveness of Uzbekistan’s power sector, meet increasing demand cost-effectively and efficiently, and help reduce the country’s carbon footprint in the long-term.”

The plant will be developed by a consortium comprising Electricité De France, Nebras Power, Sojitz Corporation and Kyuden International.

Supporting renewable energy projects and opening the energy sector to private investments is a pillar of IFC's work in Uzbekistan and the Central Asia region. IFC has been advising the government of Uzbekistan since 2018 on attracting private investments in the power sector, including helping the government develop its nascent renewable energy sector through transparent, competitive international tender processes that align with the highest environmental, social, and governance standards. IFC has also invested about $67.5 million in the country’s energy sector, in solar and wind projects in particular.

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