Total Eren secures financing for the Tutly solar project in Uzbekistan
Total Eren, one of the leading independent renewable energy producers based in Paris, has successfully signed the financing documentation related to its Tutly solar photovoltaic project.
Loans amounting to € 87.4 million are granted by the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD) and Proparco, a subsidiary of the French Development Agency (AFD ). Construction of the solar farm, located in the Samarkand region of Uzbekistan, has already started.
Located about a hundred kilometers east of the city of Samarkand, the Tutly solar farm has been entirely developed by Total Eren. It is one of the first renewable energy projects in Uzbekistan and one of the first independent power producer (IPP) projects to be built in the country. The development phase was completed in record time thanks to unique cooperation and support from the Uzbek authorities.
The EIB financed the project with a loan of 43.7 million euros, while the EBRD and Proparco respectively contributed with two loans of approximately 21.8 million euros each.
The electricity produced by Tutly was subcontracted to Uzbekistan’s national power grids under a 25-year Power Purchase Agreement (PPA). The plant is expected to start supplying the grid with electricity at the end of 2021.
Turnkey engineering, procurement and construction (EPC) contracts have been signed with METKA EGN, the Renewables & Storage Development (RSD) Business Unit of MYTILINEOS SA, a leading Greek industrial company with activities in the sectors of EPC projects, metallurgy and electricity. When completed, the plant is expected to produce 270 GWh per year, enough to meet the needs of about 140,000 people in Uzbekistan while reducing CO2 emissions by about 160,000 tonnes per year. The solar farm will also support sustainable regional growth and contribute to local employment, with more than 300 workers on site during the construction phase and 15 permanent jobs created for the operation phase.
Power generation in Uzbekistan is largely provided by thermal power plants, mainly gas and coal plants. The diversification of the electricity mix is a major step in the low carbon trajectory and the Tutly solar power plant thus contributes to the Uzbek government’s objective of reaching 8 GW of renewable capacity (solar and wind) to produce 25% of electricity. produced in the country from renewable sources by 2030.
“We are happy to have successfully finalized the financing of our first solar project in Uzbekistan, and I would like to thank the Uzbek authorities and our lenders, EIB, EBRD and Proparco, for their support, as well as our teams in Tashkent and in Paris for their hard work. Total Eren is proud to be one of the first IPPs to develop, build and finance a solar project in Uzbekistan to supply the population with low carbon electricity and help reduce the country’s dependence on fossil fuels. We look forward to commissioning the Tutly solar farm and developing other renewable energy projects in Uzbekistan and the region ”, Laurence Juin, EVP and CFO of Total Eren, said.
“Proparco is pleased to participate in the financing of the Tutly power station, a unique project developed by Total Eren and Proparco’s first project in the renewable energy sector in Uzbekistan. This financing is fully in line with AFD Group’s ‘100% Paris Agreement’ commitment. Anne Gautier, head of Proparco’s Energy and Digital division for this region, said.
Nandita Parshad, EBRD Managing Director, Sustainable Infrastructure Group, added: “We are very proud to co-finance this flagship project which was designed with great diligence by Total Eren. It contributes to Uzbekistan’s long-term decarbonization strategy, which is jointly developed with the EBRD and is designed to achieve carbon neutrality of the power sector by 2050, as well as to align power sector development of the country on the commitments made under the Paris Agreement. . “
“With climate action at the heart of the EIB’s investment activities, we are proud to support the development of the Tutly solar power plant in Uzbekistan. The factory will make an important contribution to the sustainable economic and social development of the two countries and enable Uzbekistan to strengthen the global fight against climate change. This makes Tutly an investment in local economic development and the future of our planet. I am grateful to our partners in the European Union, EBRD and Total Eren for the far-sighted partnership for a secure and prosperous future of Uzbekistan, Central Asia and the world ”, Teresa Czerwińska, EIB Vice-President, responsible for operations in Uzbekistan, mentioned.
About Total Eren
Created in 2012, Total Eren is the subsidiary dedicated to renewable energies of the EREN Group, a major player in the efficiency of natural resources. Total Eren is an independent power producer (IPP) that develops, finances, invests, builds and operates renewable energy plants (solar, wind, hydro) around the world over the long term. Since December 2017, Total SA, a key player in the energy sector, has been a shareholder of Total Eren. On April 5, 2019, Total Eren acquired NovEnergia Group, thereby strengthening its presence in Southern Europe in particular.