In a move aimed at helping the coal-dependent country move towards renewables, the European Bank for Reconstruction and Development has invested $44.5 million to finance Kazakhstan’s 50MW Burnoye Solar-2 project.
The multi-donor Clean Technology Fund is also chipping in $10 million, while the remaining $80 million in project costs will come from the park’s owners. This joint venture, called Samruk Kazyna United Green Energy, comprises London-based UG Energy and Samruk-Kazyna Invest, a Kazakh sovereign wealth fund. The investment comes as part of a $200 million EBRD renewable energy financing framework for the country.
The JV is the same group of investors that backed the first Burnoye Solar project, which received EBRD and CTF financing two years ago.
“Kazakhstan needs more projects like Burnoye,” said Nandita Parshad, EBRD managing director for energy and natural resources. “Following the success of Burnoye Solar-1, this second project is a demonstration that Kazakhstan is truly a part of the global renewable energy revolution that is happening right now.”
While Kazakhstan remains over 70 percent dependent on coal for energy production, efforts to grow its solar sector have received sizeable support from the EBRD. The bank has invested €7.3 billion in Kazakhstan, the second highest volume of any country; €1.7 billion of this total has gone towards sustainable energy and resources, according to the bank.