Uzbekistan publishes radical new ten-year strategy for power sector

The Ministry of Energy of Uzbekistan has published a ‘Concept Note‘, outlining its strategy for the provision of electricity in the Republic of Uzbekistan between 2020-2030.

The context to the Strategy is the high priority given by the Government of Uzbekistan – under the leadership of President Shavkat Mirziyoyev ” to a radical programme of reforms to meet increasing energy demand from a growing population and a fast-developing economy.

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The Strategy, which will be amended and adjusted as necessary, defines mid-term and long-term objectives and directions for the development of the power sector 2020 to 2030. It plans to deliver electrical power at competitive prices and ensure the evolution of a balanced sector, embracing international best practice and modern trends in the global electricity industry.

It outlines priority activities to be undertaken including:

  • Modernisation and reconstruction of existing power plants;
  • Construction of new generating assets using energy efficient power production technologies;
  • Improvement of power metering systems;
  • Fuel diversification and development of renewable energy sources – especially solar energy; and
  • Legal reforms to improve tariff policies and provide for the transition to a wholesale market.

By 2030, the Strategy is scheduled to deliver:

  • An increase in installed and available generating capacity from 12.9 GW to 29.3 GW, and an increase in electricity production from 63.6 billion kWh to 120.8 kWh;
  • A planned reduction in natural gas consumption from 16.5 billion cubic metres to 12.1 billion cubic metres;
  • Reductions in transmission losses to 2.35 per cent and distribution losses to 6.5 per cent (1.85x less than 2019 levels)

Mr Alisher Sultanov, Minister of Energy of Uzbekistan said: “Our new Concept Note outlines a comprehensive strategy to satisfy the increasing demand for electrical power in Uzbekistan. It also means our power sector’s development will continue in line with international best practice. The strategy is ambitious in scope, but grounded in realism with, practical and achievable goals to reach by 2030.”

The Strategy will focus on the development of renewable energy sources, which will improve environmental conditions, increase efficiency and stimulate the development of local industries, infrastructure and job creation.

It is envisaged that by 2030, whilst the state will remain the owner of Hydro Power Plants, Nuclear Power Plant and some Thermal Power Plants – most of the country’s electricity generation plants will be concentrated in the private sector.

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