48080-002: Second Solar Power Project | Asian Development Bank

Uzbekistan: Second Solar Power Project

Sovereign (Public) Project | 48080-002 Status: Proposed

The proposed Second Solar Power Project (the project) aims to reinforce Uzbekistan''s position as Central Asia's emerging solar hub by using modern technologies for large-scale on-grid photovoltaic (PV) plants, increasing access to reliable and clean electricity in rural areas, and preparing the solar sector for private sector investments. The project has three components: Component 1 (loan): construction of a 100 megawatt (MW) on-grid crystalline PV power plant in Sherabad, Surkhandarya province; Component 2 (grant): Piloting energy efficient (EE) technologies and on-grid rooftop solar PV systems for selected rural health clinics (RHCs); and Component 3: institutional capacity building for Uzbekenergo and other stakeholders.

Project Details

Project Officer
Tiangco, Cinderella C. Central and West Asia Department Request for information
Country
  • Uzbekistan
Modality
  • Grant
  • Loan
Sector
  • Energy
 
Project Name Second Solar Power Project
Project Number 48080-002
Country Uzbekistan
Project Status Proposed
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant: Second Solar Power Project
Clean Energy Fund under the Clean Energy Financing Partnership Facility US$ 2.00 million
Loan: Solar Power Development II
concessional ordinary capital resources lending / Asian Development Fund US$ 100.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Energy / Energy sector development and institutional reform

Gender Equity and Mainstreaming Some gender elements
Description

The proposed Second Solar Power Project (the project) aims to reinforce Uzbekistan''s position as Central Asia's emerging solar hub by using modern technologies for large-scale on-grid photovoltaic (PV) plants, increasing access to reliable and clean electricity in rural areas, and preparing the solar sector for private sector investments. The project has three components: Component 1 (loan): construction of a 100 megawatt (MW) on-grid crystalline PV power plant in Sherabad, Surkhandarya province; Component 2 (grant): Piloting energy efficient (EE) technologies and on-grid rooftop solar PV systems for selected rural health clinics (RHCs); and Component 3: institutional capacity building for Uzbekenergo and other stakeholders.

Uzbekistan has among the world''s highest energy and carbon intensities, given 89% of its 12.6 gigawatts (GW) installed capacity are old thermal plants (natural gas -76%, fuel oil -7%, and coal- 6%), of which 50% were built before 1982. Generation inefficiency is worsened by grid losses of 20% due to long distance transmission (not needed for solar). While Uzbekistan is almost 100% electrified, 16% of demand was unmet in 2008 and the growing demand-supply gap causes supply unreliability and dependence on diesel generators, especially in rural areas where 65% of the population lives. Provinces like Surkhandarya suffer frequent outages and only 2- 3 hours of electricity in the winter. Surkhandarya is the first to be shed during low power supply, and is usually bypassed by power exports to Afghanistan. Insufficient and unreliable electricity has affected access to health services, education and potable water and has restricted economic growth in the province. The solar plant will be its first generation capacity.

To help address nationwide power shortages, the government''s Welfare Improvement Strategy II mandated energy efficiency and faster growth of renewable energy, especially solar. Presidential Decree 4512 sought adoption of the Renewable Energy Sources Law, and creation of the International Solar Energy Institute (ISEI) and high-tech solar manufacturing industries. With the recent (November 2015) resolution breaking barriers and enabling RE generators to export surplus power to the grid, the viability of rooftop PV may be increased and assessed through introduction of different types of business models including public-private partnership (PPP) and full private sector participation in any or all phases of RE project development.

Developed with ADB assistance, Uzbekistan''s solar energy development roadmap envisions 3 GW of solar installed capacity by 2030, producing 6% of total power generation, and needing $7 billion in investments that public funds cannot fully provide. The ADB helped create the ISEI, now a thriving applied research institution, through a capacity development technical assistance (TA). An ensuing policy and advisory TA (PATA) formulated the solar roadmap, developed the country''s first Nationally Appropriate Mitigation Action submitted to the United Nations, and conducted six feasibility studies. Both TAs were rated highly successful at completion. The Sherabad project is the second after the 100 MW Samarkand Project now poised for award of the design-build-operate contract. A roadmap priority, the project will build on ADB''s assistance, install modern infrastructure, and develop key expertise and mechanisms to prepare the 97% state-owned energy sector for competition and private sector participation.

Project Rationale and Linkage to Country/Regional Strategy

The power plant site is a 400-hectare government-owned non-agricultural land, 10 km from Sherabad city. An 8-kilometer (km) transmission system and a 2-km access road need to be constructed. RHCs provide primary medical care through standardized medical equipment and are classified according to rural population served. Uzbekistan's' 2,995 RHCs are all connected to the grid but are operating inefficiently with unreliable and insufficient power and heat supply (for space and water heating). While PV is a mature technology, projects piloting PV systems including in RHCs in Uzbekistan have not been successful due to many shortcomings, such as: (i) lack of operation and maintenance (O&M) plans and corresponding service companies, (ii) underestimated demand load and insufficient capacities, (iii) lack of monitoring, and (iv) inefficient building design and equipment. The project, through the grant component of investment (GCI) funded by the Clean Energy Fund under the Clean Energy Financing Partnership Facility, will address these flaws through (i) best practice assessment, design and engineering, (ii) technical training for service companies and potential independent power producers (IPP), (iii) piloting business and contract models for power purchase agreements, O&M services and PPP arrangements, and (iv) energy efficiency measures, such as insulation, efficient windows, heating equipment and appliances. Pilots will be installed on up to 52 RHCs (spread across the 13 regions), starting with the 16 RHCs prioritized out of the 401 RHCs already assessed for rooftop PV. Government seeks to replicate to all RHCs through innovative financing for government RE generators and IPPs, including with ADB participation. Expected to generate 177 GW-hour of clean electricity annually, the project will avoid 105,000 tons of carbon dioxide equivalent (tCO2e) greenhouse gas (GHG) emissions per year.

The project is aligned with ADB''s Strategy 2020 and with key pillars of the Energy Policy 2009. The project directly supports Uzbekistan clean energy and energy security targets as prioritized under the ADB Uzbekistan Country Partnership Strategy for 2012-2016 and is identified in the ADB''s Country Operations Business Plan (COBP) 2016-2018 for Uzbekistan.

Impact Generating facilities using modern solar energy created (National Investment Program: 2015-2019)
Outcome Renewable energy generation and access in Uzbekistan increased
Outputs

100 MW solar photovoltaic power plant, transmission and support facilities installed

Access of rural populations to reliable and clean electricity in rural health clinics increased

Institutional capacity of Uzbekenergo and other solar stakeholders

Geographical Location Nation-wide, Sherobod Shahri
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The proposed project site does not involve or affect any environmentally sensitive areas. Environmental impacts are mostly related to construction works. IEE, including EMP, will be prepared to meet ADB SPS 2009 and Government's requirements for power plants.
Involuntary Resettlement The project will require land acquisition for three types of components: (i) construction of the photovoltaic power plant, (ii) construction of the transmission line, and (iii) construction of the access road from the power plant up to the existing paved road. The project is categorized as a B project for involuntary resettlement in accordance with ADB s Safeguard Policy Statement. A Land Acquisition and Resettlement Plan (LARP), will be prepared in close consultation with affected people.
Indigenous Peoples The country in general does not have indigenous people's communities as defined in the ADB SPS 2009 for operational purposes. In the project site and affected areas, none of the community, group of people maintains a separate cultural and social identity from the mainstream Uzbekistan society that would classify them as an ethnic group, ethnic minority or indigenous people as described in ADB SPS 2009. Therefore, the project team recommends that this proposed Project be classified as a _C_ project following ADB SPS 2009 for Indigenous Peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholders' consultations through community meetings, discussions and interviews will be conducted to share information about the proposed project and to get views from stakeholders on their expectations.
During Project Implementation Consultation and Participation plan to be prepared during PPTA
Business Opportunities
Consulting Services Implementation consultants will be recruited. Consulting firms will be recruited using the quality- and cost-based selection method (quality: cost weighting of 90:10), following ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). The project envisages advance consultant recruitment and contracting and aims for design and procurement readiness
Procurement Turnkey contracts will be procured for the 100 MW plant and the energy efficiency and solar systems for rural health clinics. The indicative loan and grant procurement method will be international competitive bidding, following ADB's Procurement Guidelines (2015, as amended from time to time). Procurement plans will be prepared. The project envisages advance consultant recruitment and contracting and aims for design and procurement readiness.
Responsible ADB Officer Tiangco, Cinderella C.
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Ministry of Health
Mr. Asamitdin Kamilov, Deputy Minister
12 Navoi Street Tashkent, Uzbekistan
UzbekEnergo
Mr. Fazlitdin Salomov, Chairman of the Board, Uzbekenergo
6 Istiklol Street Tashkent, 100000, Uzbekistan
Timetable
Concept Clearance 05 Dec 2016
Fact Finding 29 May 2018 to 01 Jun 2018
MRM 18 Jul 2018
Approval -
Last Review Mission -
Last PDS Update 29 Sep 2017

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.