Uzbekistan is set to strengthen its renewable energy sector with a new solar power project in the Khorezm region. The World Bank has approved a $3.5 million payment guarantee to support this initiative. The guarantee will secure the obligations of the National Electric Grid of Uzbekistan (NEGU) to purchase electricity from the upcoming 100-megawatt (MW) solar power plant. Voltalia, a France-based company, will develop, construct and operate the facility.
Expanding Uzbekistan’s Clean Energy Capacity
The solar power project is scheduled for commissioning in November 2025. It will cover 177 hectares and generate over 240 gigawatt-hours of electricity annually. This clean energy output will be enough to power approximately 60,000 households. The project will also cut carbon dioxide emissions by more than 230,000 metric tons per year.
Uzbekistan has set ambitious renewable energy targets. The country aims to achieve 25 gigawatts of capacity, covering 40% of its electricity consumption by 2030. This project aligns with that goal and supports the government's transition to a greener economy.
Strategic Investment and Financial Support
The solar power project will be implemented by Sarimay Foreign Enterprise LLC, a subsidiary of Voltalia. The company will oversee the financing, construction, ownership and operation of the plant. Under a 25-year Power Purchase Agreement, the generated electricity will be sold to NEGU.
The World Bank’s payment guarantee of $3.5 million will strengthen investor confidence. It has also helped mobilize $80 million in capital investment for the project. The European Bank for Reconstruction and Development (EBRD) has provided a financing package exceeding $54 million.
The World Bank Group has been actively supporting Uzbekistan’s renewable energy transition. Since 2020, it has facilitated the development of 1,000 MW of solar and 500 MW of wind energy in the country. This support has included financing, advisory services and technical assistance.
The project’s financing structure showcases a growing collaboration between public and private entities. Voltalia’s involvement in this initiative signals increased interest from international energy firms in Uzbekistan’s renewable sector.
The Road Ahead for Uzbekistan’s Solar Power Development
The solar power project in Khorezm represents a major step toward Uzbekistan’s clean energy future. The nation is expanding its reliance on solar and wind energy to reduce dependence on fossil fuels. With international backing and a clear policy direction, Uzbekistan is positioning itself as a regional leader in renewable energy.
The commissioning of this solar power project will contribute significantly to the country’s electricity needs. It will also create new opportunities for sustainable investment. As Uzbekistan moves forward, this initiative will serve as a model for future energy projects across Central Asia.
Uzbekistan’s renewable energy sector is undergoing rapid transformation. The upcoming solar power project in Khorezm is a key milestone in this journey. With strong financial backing from the World Bank and EBRD, the project will thereby enhance energy security and sustainability.