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 public-private partnership (PPP) solar power plant.
Uzbekistan’s Ministry of Investments and Foreign Trade awarded the project to Masdar after it tendered the lowest tariff of 2.679 US cents per kilowatt hour in a competitive auction to develop the 100-megawatt (MW) utility-scale PV solar plant, which will be located in the Navoi region.
As transaction adviser, the International Finance Corporation assisted the Ministry of Investments and Foreign Trade and the Ministry of Energy to design and tender the PPP, which attracted more than 40 bidders, under its Scaling Solar programme.
Uzbekistan aims to develop 5 gigawatts (GW) of renewable energy by 2030. Under the IFC’s Scaling Solar programme, Uzbekistan plans to install 1GW of solar PV power.
Masdar established Nur Navoi FE LLC as the local project company to deliver and operate the PV plant. Construction is planned to commence in the third quarter of 2020 and the PV plant start-up is scheduled for the third quarter of 2021. The project company will also operate and maintain the plant for 25 years.