The European Bank for Reconstruction and Development (EBRD) has approved ~$329 million (₹23.6 billion) for the Kazakhstan Renewables Framework to support the country’s drive as a regional leader to promote renewable energy.

The facility will promote solar, wind, hydro, and biogas, distribution and transmission projects and is expected to reduce carbon emissions by at least 500,000 tons per year, states the company.

The first phase supported 262 MW of renewable power-generation capacity across the country. It attracted four private international investors and supported a grid-strengthening project.

In addition to the EBRD funding, the framework will also be supported by concessional finance from the Green Climate Fund. According to the company, “It will also benefit from a comprehensive technical cooperation program, which will support competitive tendering for wind projects, the development of a carbon market in Kazakhstan and the promotion of gender inclusion in the renewable energy sector.”

Earlier this month, Kazakhstan’s Ministry of energy and EBRD signed a Memorandum of Understanding (MoU), reaffirming the bank’s commitment to supporting renewable projects in Kazakhstan.

The company states that the extension of the Kazakhstan Renewables Framework will help the country to reach its renewable energy targets of 3% of generation by 2020 and 50% by 2050 and to meet its commitments under the Paris Climate Agreement.

To date, the EBRD has invested over ~$9.1 billion (~₹654 billion) through 262 projects in the economy of Kazakhstan, states the press release. The EBRD is the largest international investor in Kazakhstan’s economy outside of the oil and gas sectors and has an extensive presence in the country.

In May 2018, Mercom had reported that the EBRD partnered with the United Nations’ Global Climate Fund (GCF) for the construction of a 30 MW solar power project at Zhangiz-tobe, located in the country’s eastern region.

In February 2019, EBRD financed a 50 MW solar power project in southern Kazakhstan. The project located at Chulakkurgan, south Kazakhstan, is expected to generate over 102 GWh of electricity per year and will help reduce carbon emissions by 86,000 tons per year. For this investment, the EBRD teamed up with Risen Energy, a Chinese solar modules manufacturer and project developer.

According to Mercom 1H and Q2 2019 Solar Funding and M&A Report, the total corporate funding (including venture capital funding, public market, and debt financing) in the first half (1H) of 2019 was up with $6 billion raised compared to the $5.4 billion raised in 1H 2018, an 11% increase year-over-year (YoY).