EBRD may lend up to $1,5 billion for Central Asia Hydro Plant

The European Bank for Reconstruction and Development (EBRD) could lend up $1.5 billion for an Central Asian hydropower station, according to its president. He also noted that the demand for renewable energy is increasing despite some resistance to funding green energies.

Kambar-Ata 1 is one of Central Asia's largest renewable energy projects, with a combined 1,860 megawatts. Megawatts of power is expected to boost agricultural output in Kyrgyzstan and Kazakhstan, and provide electricity.

The bank, along with the European Union and the European Investment Bank, as well as the governments of all three countries, has signed a memorandum for understanding worth 900 million euros ($1.05 billion). This project is located in Kyrgyzstan.

EBRD president Odile Renaud Basso stated that the bank was considering three sovereign loans, each of which could be worth up to $500,000,000. This is subject to further discussion with other stakeholders as well as EBRD board approval.

DEMAND FOR RENEWABLE ENERGY INVESTIMENTS IS GROWING

She said that the cost of green energy, batteries, and grids capable of connecting to renewable power has fallen, and this is causing an increase in interest across all the countries where the lender operates.

Renaud Basso said in an interview Monday that "we see... a kind of ramping-up of demand for renewable investment in grids to be able connect more renewables."

The EBRD primarily funds private-sector project across emerging economies of Europe, Africa and Jordan as well as Lebanon and Lebanon.

Despite the hostile attitude of President Donald Trump towards such projects, the bank continues to focus on the transition to green energy and expanding human capital. This includes supporting women in business.

Renaud Basso stated that borrowers understand the benefits of these initiatives.

She said: "They see this as an opportunity to diversify... diversifying energy supplies, reducing pollution, having a cheaper energy source, being able to export electricity, etc." $1 = 0.8575 euro (Reporting and editing by Joe Bavier, Karin Strohecker, and Libby George)

(source: Reuters)