Chapter 5 | PROJECTS CONTRIBUTING TO THE OPEC FUND’S CLIMATE FINANCE
UZBEKISTAN
500 MW Bash & 500 MW Dzhankeldy Wind Farm
Situation Analysis of Climate Impacts
The OPEC Fund is supporting 1 GW renewable energy generation in Uzbekistan with two US$20 million loans for the construction of two wind power plants. The total US$40 million 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 Bukhara region of Uzbekistan. The new facilities will boost renewable energy generation capacity, reduce GHG emis- sions and diversify the country’s energy mix.
Uzbekistan faces significant challenges due to climate change, which will heavily influence its accelerated develop- ment path. Although Uzbekistan contributes only 0.3 percent to global CO 2 emissions, it is one of the most energy-inten- sive countries worldwide. If the country does not take steps to decarbonize, its rapid economic growth will increasingly conflict with global climate change mitigation efforts. Due to a combination of political, geographic and social factors, Uzbekistan is recognized as vulnerable to the impacts of climate change. On the 2023 ND-GAIN Index, Uzbekistan’s score is 52. Figure 13 presents a time-series plot illustrating Uzbekistan’s progress on the ND-GAIN Index over time. 53
Figure 13: Uzbekistan ND-GAIN Index
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FUNDING DETAILS:
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• Total program cost: US$656.57 million for ACWA Power Dzhankeldy and US$688.41 million for ACWA Power Bash • OPEC Fund contribution: US$20 million for each project (US$40 million in total) • Type of financial instrument: Senior loan • Co-financiers: EBRD, Asian Development Bank, Proparco, DEG Standard Chartered Bank and Industrial and Commercial Bank of China • OPEC Fund climate finance as percentage: 100 percent mitigation finance.
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Source: https://gain.nd.edu/our-work/country-index
Uzbekistan ranks 112th out of 191 countries on the INFORM Index for global disaster risks. 54 This ranking is largely due to its high exposure to earthquakes, where it scores 9.9 out of 10, making it the second highest in the world. The coun- try also ranks among the top 20 globally for drought expo- sure and faces significant hazard from wildfires. Additionally, Uzbekistan experiences above-average flood hazards. De- spite these high exposure levels, Uzbekistan benefits from relatively low vulnerability and moderate coping capacity.
TIMELINE:
• The OPEC Fund was invited to this transaction by one of its strategic partner, International Company for Water and Power Projects (ACWA Power or the Sponsor) with whom the Fund has developed a strategic relationship towards investing in power and water infrastructure internationally. • The OPEC Fund approved the program in December 2022 but signed in March 2023. • The first disbursement from the OPEC Fund was in August 2023.
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