The financing package arranged by the EBRD includes a local-currency loan of the equivalent of up to US$ 51.3 million, as well as a loan of up to US$ 22.2 million from the Green Climate Fund (GCF). The project will help to develop the country's potential in renewables and strengthen the private sector's involvement in the power and energy sector, historically dominated by state entities.
The solar park project will be implemented by SES Saran LLP, a special-purpose company incorporated in Kazakhstan and ultimately owned by the German group Joachim Goldbeck Holding GmbH, which is now developing a portfolio of solar projects worldwide.
The new solar plant will help reduce CO2 emissions by 93,500 tonnes per year and contribute to Kazakhstan's national emission reduction targets as well as the EBRD's Green Economy Transition strategy.
The project is part of the EBRD-GCF Kazakhstan Renewables Framework designed to increase investments in renewables, provide technical assistance and build institutional capacity for energy integration, renewable energy, carbon market policies and planning, with a total GCF contribution of US$ 110 million.
The project expands cooperation between EBRD and the Ministry of Energy of the Republic of Kazakhstanon developing renewable energy and Kazakh emissions trading scheme (ETS) in the country in line with a Memorandum of Understanding signed in 2017.
The EBRD has committed €26.7 billion Green Economy Transition since 2006, with 6.3 billion invested in renewable energy, both directly and through credit lines, and over 10,000 MW of total renewable capacity installed.
To date, the EBRD has invested over €7.5 billion through 246 projects in the economy of Kazakhstan. Private sector support and diversification are among the Bank's priorities in the country.