AIIB Invests $46.7 mn in 100 MW Wind Farm in Kazakhstan

AIIB has approved a USD 46.7-million loan for the construction and operation of a 100-megawatt (MW) wind power plant in southern Kazakhstan.

The Asian Infrastructure Investment Bank (AIIB) has announced that its board has approved a USD 46.7-million loan for the construction and operation of a 100-megawatt (MW) wind power plant in southern Kazakhstan which, when completed, will be the largest in Central Asia.

Located approximately nine kilometers southwest of Zhanatas in the southern Zhambyl region, the plant will, on a yearly basis, provide the country approximately 319 gigawatt hours (GWh) of renewable energy and reduce carbon dioxide emissions by 260,623 tons.

The Zhanatas wind power plant is supported by a memorandum of understanding between AIIB and the Ministry of Energy of the Republic of Kazakhstan, which laid the foundation for greater cooperation on renewable energy project financing.

“Our investment in the largest wind power plant in the region reflects AIIB’s support for the Government of Kazakhstan’s transition to a “green economy,” which will advance efforts to meet the country’s commitments under the Paris Agreement,” said AIIB vice president and chief investment officer D.J. Pandian.

Recently, the European Bank for Reconstruction and Development (EBRD) has announced that it is loaning EUR 58 million to help finance the construction and operation of the 105 MW Bajgora wind farm in Kosovo. The loan is half of the total required financing for the project, with rest provided by Erste Group Bank and NLB Bank, both benefiting from the cover provided by the German export credit agency Euler Hermes.

When complete, the Bajgora will represent about 10 percent of the country’s installed capacity and avoid 247,000 tonnes of CO2 emissions a year, making a significant contribution to climate change mitigation. This will be the largest electricity plant constructed in Kosovo since the 1980s and represents a major step forward in the country’s energy transition. More renewable energy will help address the twin challenges of reducing power cuts and avoiding pollution caused by the coal powering Kosovo’s two existing main electricity plants.