The EDB to finance the construction of the Kyrgyz Republic’s first solar power plant
Bishkek, 26/27 May 2022. The Eurasian Development Bank, the Ministry of Natural Resources, Ecology and Technical Supervision of the Kyrgyz Republic, the AIFC Green Finance Centre, and Bishkek Solar signed a cooperation agreement to finance the first phase of the construction of a solar power plant in the Kyrgyz Republic. The signing took place during the Eurasian Economic Forum in Bishkek.
This is the first solar power project in the country. The plant’s capacity will be 50 MW or 91 million kWh per year. The new facility will be located in the north of the country, in the Issyk-Kul district of the Issyk-Kul Region, to provide it with additional electricity, reduce the country’s power shortages, and save water resources so that the electricity regulation regime could be comfortably adjusted. The general contractor is TechnoGroupService, a Kazakhstan’s engineering company implementing renewable energy projects.
By signing the agreement, the EDB reiterates its interest in arranging financing for the construction of the power plant, tentatively up to US $40 million. With the support from the Ministry of Natural Resources, Ecology and Technical Supervision of the Kyrgyz Republic, the AIFC Green Finance Centre, and the Bank’s partners, the country plans to further develop renewable energy facilities and expand its green agenda for sustainable development.
The Kyrgyz Republic is among Eurasia’s leaders in terms of solar energy resources. The average annual sunshine duration is between 2,100 and 2,900 hours. In most of the country, horizontal solar irradiance values are in the range between 1,300 and 1,800 kWh/sq m per year. According to UNDP, the potential capacity of solar power plants to be built in the country totals 267 GW.
“This project is of high environmental and social importance for Central Asia and the Kyrgyz Republic as it will provide the country’s northern territories with electricity. Developing green finance and renewable energy in the member states is among the EDB’s priorities under its Strategy for 2022–2026. The Kyrgyz Republic has significant potential to implement sustainable development projects and we will fully support the introduction of ESG practices, including through GFC Bishkek, a vehicle currently being established,” said Nikolai Podguzov, Chairman of the EDB Management Board.
Additional Information:
The Eurasian Development Bank (EDB) is an international financial institution investing in Eurasia. For 15 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. The EDB's charter capital totals US $7 billion. Its portfolio mainly consists of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing, and mechanical engineering. The Bank’s operations are guided by the UN Sustainable Development Goals and ESG principles.
The EDB Media Centre:
Azima Sapargaliyeva +7 (777) 750 00 08 (Almaty)
The Astana International Financial Centre (AIFC) is an independent jurisdiction that began operating in 2018. In accordance with its Development Strategy until 2025, the AIFC focuses on becoming a universal platform to connect the countries of the EAEU, Central Asia, and the Caucasus.
The AIFC Green Finance Centre is an AIFC institution set up to promote green finance in Kazakhstan and Central Asia. Its main objective is to attract investment in a sustainable economy using trendsetting financial instruments such as green and social bonds. In addition, as a regional think tank, the AIFC Green Finance Centre provides policy and business advice on green finance and sustainable development to governments, quasi-governmental organisations, and businesses. It assists potential issuers, investors, and market players in preparing for the issuance of green bonds on the AIFC Exchange.