The Asian Development Bank (ADB) has signed an $11.5 million loan agreement with Baikonyr Solar LLP for the expansion of solar power in Kazakhstan.
The scope of work includes the design, construction, commissioning, operation, and maintenance of a 50 MW solar power project with grid integration. The solar project is expected to generate 73 GWh hours of electricity per year.
The project consists of approximately 150,822 photovoltaic panels, 14 central inverter stations, and a substation which will be located in southern Kazakhstan spread over 150 hectares.
“Kazakhstan’s energy sector has mostly relied on coal with almost 80 percent of the country’s electricity generated from coal-fired power plants, which are mostly outdated and obsolete. ADB’s loan to Baikonyr will help Kazakhstan achieve its goal of increasing the share of renewable energy in the country to 50 percent by 2050 while reducing its carbon emissions,” said Mohammed Azim Hashimi, ADB Senior Investment Specialist for Private Sector Operations.
This is the first time ADB has provided long-term local currency financing for a solar project in Central Asia. It also marks ADB’s first co-financing with the European Bank for Reconstruction and Development
(EBRD) in Kazakhstan’s renewable energy sector.
“Building on the highly successful track record of our existing solar projects in Kazakhstan, we are particularly happy to have with the ADB and BVF two new strategic partners on board for our landmark Baikonyr project,” said Albrecht Frischenschlager, UG Energy Director.
Baikonyr Solar LLP is a special purpose vehicle incorporated in Kazakhstan owned by UG Energy Limited and Baiterek Venture Fund Joint Stock Company (BVF), which is a subsidiary of Kazakh sovereign wealth fund Baiterek JSC.
Recently, Mercom reported that EBRD announced the financing of a 50 MW solar power project in southern Kazakhstan. The proposed financing package arranged by the EBRD includes a local currency loan of up to $40.4 million in Kazakhstan Tenge and a loan of up to $10 million from the Green Climate Fund (GCF). In December 2018, EBRD and Green Climate Fund provided loan of $73.5 million to Kazakhstan’s 100 MW solar project.