The European Bank for Reconstruction and Development is organizing financing of $54.6 million for Sarimay Solar, a subsidiary of France's Voltalia, which is carrying out a pilot project in Uzbekistan to build a 100 MW solar power plant.

The new solar photovoltaic plant is being built in the Khorezm region and is Voltalia's first renewable energy project in Uzbekistan, the EBRD press service said.

The EBRD's financial package of up to $54.6 million (50.5 million euros) will be provided to Sarimay Solar, a special-purpose company fully owned by Voltalia, an international energy producer and service provider domiciled in France. It will consist of a senior loan of up to $44.8 million (41.5 million euros) and a special facility of 9 million euros, which will support Sarimay Solar during the construction phase of the project," the EBRD said.

The project will benefit from a guarantee covering a senior loan tranche of $7 million (6.5 million euros) provided by the European Union's European Fund for Sustainable Development Plus.

"Awarded through a competitive tender, this is the first renewable energy project for Voltalia in Uzbekistan," the EBRD said.

Uzbekistan plans to generate up to 25 GW of solar and wind energy by 2030.

The Uzbek Energy Ministry at the end of 2022 awarded tenders for the construction of three solar power plants in the country to companies from the UAE, China and France. Masdar of the UAE won a tender for a 250 MW plant in the Bukhara region, the GD Power - Powerchina (China) consortium for a 150 MW plant in the Namangan region and Voltalia for a 100 MW plant in the Khorezm region. The tender was called in September 2021, when it was reported that the winners would design, finance, operate and service solar photovoltaic power plants for 25 years.

Uzbekistan is the leading recipient of EBRD funding in Central Asia. To date, the bank has invested around 4.9 billion euros in 167 projects across the country, with most of those funds supporting private entrepreneurship.