The Asian Development Bank has signed an agreement to finance a project in the south of the central Asian nation. The 50 MW project will be located in Kazakhstan’s Baikonur region, well known as the home of the world’s largest – and oldest – space launch site. Image: (NASA/Carla Cioffi) The Asian Development Bank will lend $11.5 million (KZT4.34 billion) to fund a 50 MW solar project in southern Kazakhstan. The loan will be provided to Baikonur Solar LLP – a special purpose vehicle owned by U.K.-based United Green Energy Ltd – and the Kazakhstani sovereign wealth fund Baiterek Venture Fund Joint Stock Company. Additional public funding – of around $30 million – for the project has been provided by the European Bank for Reconstruction and Development (EBRD) and the Clean Technology Fund. As well as the solar power plant, the project includes construction of a substation and grid connection infrastructure. The project marks the ADB’s first move into financing solar in Kazakhstan. Partner the EBRD has already financed several projects in the nation, including the 100 MW SES Saran Solar project which was connected in January. China’s Risen Energy has completed a 40 MW project in eastern Kazakhstan which it claims makes it the first private enterprise to invest in the country’s solar development. Climate ambition Under the Paris climate accords, Kazakhstan committed to reducing carbon emissions by 15% below its 1990 levels by 2030. The country also aims to generate half its energy from renewables by 2050. Kazakhstan held a solar tender in October which assigned four PV projects with a total capacity of 170 MW. “Kazakhstan’s energy sector has mostly relied on coal, with almost 80% of the country’s electricity generated from coal-fired power plants which are mostly outdated and obsolete,” said ADB senior investment specialist for private sector operations, Mohammed Azim Hashimi. “ADB’s loan to Baikonur will help Kazakhstan achieve its goal of increasing the share of renewable energy.” Mark Hutchins joined pv magazine in September 2016 as production editor of the monthly global title. Mark also works online reporting on upstream technology and markets, as well as newly emerging solar regions. More articles from Mark Hutchins
The Asian Development Bank (ADB) will support the construction of a 50 MW solar farm in Kazakhstan with a $11.5m loan provided to Baikonur Solar, a special purpose vehicle owned jointly by UK firm United Green Energy and Kazakh sovereign wealth fund Baiterek Venture Fund Joint Stock Company. The project is expected to be completed within two years at an estimated cost of $US1 billion. While EBRD has already backed solar energy in the central Asian country, this is the first such investment for ADB.