ADB's $30 million loan opens new clean energy pathway in Kazakhstan

The Asian Development Bank (ADB) has signed an agreement for a $30.5 million loan in tenge equivalent to M-KAT Green LLP—a special purpose vehicle created for the project—to build and operate a solar plant to ease power supply shortages and boost the share of renewable sources in the country’s energy mix.

The project is co-financed with the European Bank for Reconstruction and Development (EBRD) and is ADB’s first project in Central Asia with Total Eren.

“This will be one of the largest solar power projects in Central Asia and an important step forward given that Kazakhstan’s electricity sector needs significant investment to rehabilitate outdated power assets and expand capacity to meet rising energy needs,” said Investment Specialist at ADB’s Private Sector Operations Department Mr. Wolfgang Pocheim. “ADB’s assistance will have a demonstration effect on other potential developers and sponsors to establish the viability of future solar projects.”

The 100-megawatt (MW) power plant is already under construction in the country’s southeast, near the town of Shu in the Jambyl Region. It will cover 500 hectares and is scheduled to be operational by the end of this year. ADB supported the project jointly with EBRD, building on a successful partnership between the two organizations in financing renewable energy projects in Kazakhstan.

In 2013, Kazakhstan announced a plan to transition to a green economy and boost the share of clean energy to 50% of total power generation by 2050.

The power plant will help Kazakhstan fulfill its nationally determined contribution to the Paris Agreement on climate change by reducing carbon emissions.

Original source: ADB
Published on 03 July 2019