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2019-07-26

Announced a plan for reforms in the energy sector of Uzbekistan

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On July 18, the International Forum on Energy Reforms was held in Tashkent.

On the agenda were discussed plans for the implementation of electricity sector reforms, the investment program and private sector participation in the energy sector, as well as support for partners in the development of electricity sector reforms.

At the beginning of the event, experts and representatives of ministries and departments discussed the Draft Plan of Practical Measures to Reform the Electric Power Industry of the Republic of Uzbekistan (hereinafter - the Plan).

The plan contains specific measures to further reform the electricity industry in the following areas:

1. Organization of activities and implementation of corporate governance in new enterprises of the electric power industry (JSC TES, JSC RES, and JSC NESU)

2. Commercialization of enterprises of the electric power industry

3. Financial sustainability and tariff reforms in the electricity industry

4. Investment program and private sector participation in the electricity industry.

5. Organizational issues of practical implementation of reforms in the electricity industry.

As part of the discussion of the participation of the private sector in the energy sector, issues of the implementation of several large projects were raised, in particular:

1. Solar energyCurrently, a pilot project for the construction of a 100 MW solar photovoltaic station in Navoi Oblast is being implemented in Uzbekistan as part of a public-private partnership (PPP) with consulting support from the International Finance Corporation (IFC).

In the long term, with consulting support from IFC and ADB, it is planned to increase the installed capacity of solar power plants to 2000 MW (2 GW) based on the PPP mechanism.

In terms of solar power generation, it is planned to bring the generated capacity to 7,000 MW by 2030.

At the same time, a project is being prepared for the profound modernization of the magistal lines, taking into account the planned creation of new generation capacities. This will create conditions for speeding up the implementation of generation projects, incl. RES.

2. Wind power

In cooperation with the company “Masdar” (UAE) it is planned to build wind power plants with a total capacity of 500 MW based on G2G (government to government).

A memorandum was concluded with the European Bank for Reconstruction and Development (EBRD) on the implementation of PPP projects in the field of wind power.

3. Steam and gas installations

Together with the IFC, it is planned to attract foreign investors to implement a project for the construction of a combined-cycle thermal power plant in the Syrdarya region with a total generating capacity of 2,600 MW (greenfield).

In cooperation with the Mubadala company (UAE), it is planned to implement the Talimarjan TPP project based on G2G (government to government).

Other promising projects

In addition, at present, together with the interested ministries and departments, the issue of engaging the ADB advisory service to work out projects for the transfer of the gas supply system and the distribution network of electricity to the city of Tashkent is being considered.

It should be noted that the republic has a huge potential for the development of solar energy, in particular in the Bukhara, Kashkadarya, Navoi, Samarkand and Surkhandarya regions.

There is significant potential for wind energy production in the Republic of Karakalpakstan, the Bukhara and Navoi regions.