The EBRD has announced the provision of $11.3m loan for the construction of two biogas plants in the Belarus, to support the renewable power generation and a better energy supply mix in the country.
EBRD is expected to lend the funds to two special purpose companies established by the Lithuania-based Modus Group.
The two new plants are planned to have a total installed capacity of 3MW and expected to generate 23.6GWh of clean energy annually. The plants would provide a clean, efficient solution for dealing with large quantities of agricultural waste.
The present project supports the foreign direct investment in Belarus’ power sector and is expected to reduce 9,100tons of CO2 emissions per annum.
The project supports cross-border investments and marks the EBRD’s second transaction with Modus Group. The Government of Japan is providing the technical assistance for the project.
EBRD said that it has started operations in Belarus in 1992 and invested approximately €2.4b in 112 projects in various sectors of the country’s economy.
In January, EBRD announced financing for the construction of a new 50MW solar power plant in the southern Kazakhstan. The financing package included a local currency loan of up to $40.4m in Kazakhstan Tenge and a loan of up to $10m from the Green Climate Fund (GCF).
To be constructed in Chulakkurgan, south Kazakhstan, the solar power facility will be capable of generating more than 102GWh of electricity per annum and help reduce 86,000 tons CO2 emission per annum.
The project is a part of EBRD’s Kazakhstan Renewables Framework, a €200m facility for financing renewable energy projects in Central Asia.
The financing was the eighth project to be signed under the Bank’s Renewables Framework. As part of the framework, EBRD is supporting the implementation Kazakhstan government’s strategy related to renewable energy and carbon market.