Toronto-based energy company SkyPower has agreed to invest $1.3bn in Uzbekistan, the largest foreign direct investment (FDI) that the country has ever received, in the aim of building a 1,000MW solar farm.
In addition, the deal also marks the first Power Purchase Agreement (PPA) within Uzbekistan, where the country will purchase energy from an international or private firm.
In this sense, SkyPower will become the first independent power producer in the history of Uzbekistan, working closely with state owned utility firm Uzbekenegro.
“This historic partnership with UzbekEnergo and the government of Uzbekistan will bolster growth in the region and help establish Canadian expertise in this fast-growing sector,” said François-Philippe Champagne, Minister of International Trade for the Government of Canada.
It is forecast that the solar farm will contribute roughly 10% of Uzbekistan’s total renewable energy generation capacity, helping the country to stay in line with its Paris Climate agreement commitments.
“There are still more than a billion people globally without access to energy services, and our mission is to bring solar power to people who need it most,” said SkyPower Chief Executive Officer Kerry Adler.
The project will add approximately $2.9bn to the country’s annual GDP, creating thousands of local jobs in the process.