The European Bank for Reconstruction and Development (EBRD) has agreed to co-finance the construction of another 50 MW solar park in Kazakhstan with a loan of up to $28 million.
EBRD said it has now signed a mandate letter for the loan, and that the letter outlines preliminary terms and conditions for the project.
The solar facility, named Baikonur Solar park, will be located in the Kyzylorda region in the south of the country close to the border with Uzbekistan. The project will be developed by Samruk Kazyna United Green Energy Ltd., which is a joint venture between U.K. investment firm UG Energy Ltd and Samruk-Kazyna Invest, a division of the local sovereign wealth fund.
The company is also building two more 50 MW solar parks in Kazakhstan – the Burnoye Solar-1 and the Burnoye Solar-2, both in the southern region of Zhambyl and both financed by the EBRD.
Overall, the EBRD has agreed to provide around €200 million in funds for renewable energy financing in Kazakhstan. For the Burnoye Solar-2 project the bank granted a $44.5 million financing in partnership with Clean Technology Fund (CTF), which will contribute $10 million. The 50 MW Burnoye Solar-1 project was also financed by EBRD and the CTF with $80 million in 2015.
Furthermore, the ERBD announced it has signed a memorandum of understanding (MoU) with the Minister of Energy of Kazakhstan, Kanat Bozumbayev, to open the country’s renewable energy market to a wider range of investors working under the EBRD’s dedicated framework.
Bozumbayev announced a plan to introduce an auction scheme for renewable energy in late 2016.