03 | THE RESULTS – DELIVERY BY SECTORS
RAMPING UP RENEWABLES ACROSS UZBEKISTAN
Uzbekistan’s ageing energy infrastructure has recently struggled to meet demand from a young population of over 35 million, of which almost a third is under the age of 14 and which is growing steadily at over 2 percent per year, according to the UN Population Fund. Anticipating electricity demand to double by 2030, the Central Asian country has launched a raft of reforms to upgrade and decarbonize its energy industry and to create a more attractive environment for private sector investment. Following the government’s liberalization of markets in 2019, several major players — including Saudi Arabia’s ACWA Power — have joined the energy sector. The OPEC Fund is supporting 1 GW renewable energy generation in Uz- bekistan through two separate US$20 million loans signed in March 2023 for the construction of two wind power plants. The loans provided to ACWA Power will support the construction and operation of the 500 MW Dzhankeldy wind farm and the 500 MW Bash wind power plant in the southern Bukhara region of Uzbekistan. The new facilities will boost renewable energy generation capacity, reduce greenhouse gas emissions and diversify the country’s energy mix. The OPEC Fund’s commitment to the project supports the strategic priorities of facilitating South-South investments and increasing the share of climate financing in its portfolio. Financing for the Dzhankeldy wind farm will support the construction, operation and maintenance, as well as the development of 128 km trans- mission infrastructure. The plant will generate 1,550 GWh of electricity annually. The Bash wind power plant will generate more than 1,650 GWh of electricity annually and include the construction and installation of 160 km transmission infrastructure. Combined, the plants will reduce CO 2 emissions by 1.8 billion tonnes. The energy transition is one of the defining struggles of our time, which requires the harnessing of renewable energy to serve the needs of young populations across developing countries. In 2023, the OPEC Fund provided US$202 million to the energy sector in partner countries worldwide.
OLUMUYIWA OSIBANJO OPEC Fund Senior Investment Manager
Embarking on this journey with Uzbekistan to harness the winds of change, we at the OPEC Fund are deeply committed to not just meeting the energy demands of today, but to empowering a brighter, greener future for generations to come. Our US$40 million investment into renewable energy is more than a financial commitment; it’s a testament to our belief in the transforma- tive power of sustainable development. By supporting the construction of these wind power plants, we are not just reducing carbon footprints but also laying down the tracks for sustainable growth in a region that holds a special place in our collective mission. It is a privilege to be part of such a pivotal movement, and together, we are setting the stage for a future where energy is clean, abundant and accessible to all in Uzbekistan and beyond.
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