In November 2019, Masdar signed a Power Purchase Agreement (PPA) and Government Support Agreement (GSA) with the Government of the Republic of Uzbekistan to design, finance, build and operate the country’s first successfully financed independent-private producer (IPP) solar power plant.
The project was awarded to Masdar under the International Finance Corporation’s Scaling Solar programme, following a competitive tender that featured 40 bidders and saw Masdar bid a record low tariff. The 100-megawatt (MW) plant is located in the Navoi region and was inaugurated in August 2021. It produces enough power for 31,000 households and displace around 150,000 tonnes of CO2 each year.
Masdar established Nur Navoi FE LLC as the local project company to deliver and operate the PV plant. The project company will also operate and maintain the plant for 25 years.
Nur Navoi is the first Masdar project to begin operations in Uzbekistan, with the company having committed to a number of other solar and wind projects in the Central Asian country. Masdar has signed additional agreements to develop two PV projects, with a combined capacity of 440 MW, and has won a tender for a 457 MW PV project in Uzbekistan. It has also agreed to develop, build and operate a 500 MW wind farm in Zarafshan, which is set to be the largest in Central Asia. The Republic of Uzbekistan has set a goal of developing five gigawatts (GW) of solar and 3 GW of wind capacity by 2030.