EBRD backs 50-MW phase 2 of Kazakh solar project

The European Bank for Reconstruction and Development (EBRD) on Monday announced financing for the 50-MW Burnoye Solar-2 project in Kazakhstan.

The project in the southern Zhambyl region is the second phase of the 50-MW Burnoye Solar-1, described as Kazakhstan's first utility-scale renewable energy project, which was also supported by the EBRD. Burnoye Solar-2 will be built by the same investors, a joint venture between UK-registered investment firm UG Energy Ltd and Samruk-Kazyna Invest, a division of the sovereign wealth fund.

The EBRD will provide a local currency loan equivalent to up to USD 44.5 million (EUR 39.7m) for up to 15 years. It is partnering with the multilateral Clean Technology Fund (CTF), which is providing a USD-10-million loan for up to 20 years. The owners of the solar park will invest the remainder of the project cost, estimated at up to USD 80 million.

The EBRD loan is part of the bank's USD-200-million renewable energy financing framework for Kazakhstan, a country that is still over 70% dependent on coal for energy production. It comes shortly after the EBRD approved a USD-500-million framework to finance solar projects in Egypt.

(USD 1 = EUR 0.892)

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