EBRD & CTF Provide Non-Recourse Funding to Kazakhstan Solar Project
Written By: Tracy Dawson Roses
June 3, 2015
On June 3, the European Bank for Reconstruction and Development and the Clean Technology Fund announced it will provde the Burnoye Solar Project with financing of over €80 million ($89 million). The Burnoye Solar Project is owned by UK-based United Green Energy Limited and Samruk Kazyna Invest LLP, the investment arm of Kazakhstan’s sovereign wealth fund.
The EBRD will lend 14.06 billion tenge (€70 million or $78 million equivalent), and the CTF will lend €13.8 million ($15 million) to the project which is pioneering the use of a non-recourse project finance structure in Kazahkstan.
Work on the Burnoye Solar project started following the adoption in 2014 of the Renewables Law on which the EBRD – the largest renewable energy investor in its region – cooperated closely with the Kazakh government. Burnoye Solar will be located in the energy-deficit Zhambyl region in south Kazakhstan, in an area close to Western Europe-Western China highway. The project was implemented jointly by local and European contractors, with the advantage of ensuring a transfer of technology into the country.
The EBRD President, Sir Suma Chakrabarti, said:
“The EBRD has consistently supported sustainable energy projects in Kazakhstan, but Burnoye Solar is a particular landmark for the country’s Green Economy agenda. It is a first in many crucial categories. It will be the first commercial-scale solar park in Kazakhstan. It will be the first privately owned renewable energy generator in Kazakhstan. And it is the first use of a new project finance structure that will open the door to more private investment in renewables in the future.”