The EBRD and its partners will provide a loan to Baikonur Solar LLP, a wholly owned subsidiary of private investment group United Green.
The project will be developed by Samruk Kaznya United Green Energy Ltd, a joint venture between UK based United Green and local sovereign wealth fund Samruk-Kazyna Invest.
The loan will comprise up to $30 million provided by the EBRD, $10.4 million from the Clean Technology Fund (CTF) and $12 million from the Asian Development Bank (ADB). The ADB and EBRD will provide loans in the Kazakh currency with CTF financing in USD and Euros.
As well the development, construction and operation of the solar farm, the loan will also cover construction of a new substation in the Kyzlorda region of southern Kazakhstan. The project in Baikonur – best known as the location of the world’s oldest and largest space launch site – will be the fifth project approved under the EBRD-Kazakhstan Renewables Framework: an agreement between the two partners aimed at opening Kazakhstan’s renewable energy market up to a wider range of investors.
The EBRD and CTF have previously worked together to fund two 50 MW projects in Kazakhstan; Burnoye 1 and Burnoye 2. In March, Kazakhstan announced plans to tender 290 MW of PV projects in a series of auctions throughout 2018 as part of a broader plan to tender 1 GW of renewable energy capacity this year.