BLENDED FINANCE STRUCTURES FOR SOLAR AND WIND PROJECTS IN UZBEKISTAN: MATCHING DONOR CAPITAL WITH PRIVATE INVESTMENT

Uzbekistan is rapidly transforming its energy sector to reduce dependence on fossil fuels and increase the share of renewable energy in electricity generation. The country's ambitious renewable energy targets require substantial financial resources that cannot be met solely through public funding or private investment. Blended finance has emerged as an effective mechanism for mobilizing private capital by strategically combining concessional donor funding with commercial investment. This paper examines the role of blended finance structures in supporting solar and wind energy projects in Uzbekistan. It explores how international financial institutions, development agencies, and private investors can cooperate to reduce investment risks, improve project bankability, and accelerate renewable energy deployment. The study also evaluates the current policy environment, identifies financial challenges, and proposes practical recommendations for strengthening blended finance mechanisms. The findings demonstrate that well-designed blended finance models can significantly increase private sector participation while supporting Uzbekistan's long-term sustainable development and climate objectives.