The European Bank for Reconstruction and Development (EBRD) has agreed to finance the construction of a 50MW solarpower plant in Kazakhstan.
Under the proposed financing package, EBRD will provide a loan of up to $40.4m and a loan of $10m will be offered by the Green Climate Fund (GCF).
Located in Chulakkurgan, south Kazakhstan, the solar plant will have the capacity to generate more than 102GWh of electricity a year and will help reduce CO2 emission by 86,000t per annum.
For this project, EBRD has teamed up with China’s leading solar modules producer and project developer Risen Energy.
This is the second project where EBRD and Risen have partnered.
Both organisations have worked together for the 40MW solar plant in the Karaganda region of the country.
It is the eight solar project to be signed under the EBRD’s Kazakhstan Renewables Framework.
The €200m Kazakhstan Renewables Framework facility benefits from a $110m contribution allocated by the GCF. The framework aims to finance renewable energy projects in Central Asia.
According to EBRD, Kazakhstan depends on fossil fuels for power generation, with coal-fired plants accounting for 72% of generation. Last November, EBRD and GCF committed to $70m loan for construction of a 100MW solar plant in the Karaganda region of Kazakhstan.
More than $8.85bn has been invested by EBRD in the economy of Kazakhstan through 254 projects to date.