Energy market development and regulatory agency of the Republic of Uzbekistan

The project “Application of Innovative Carbon Resources for Energy Reforms” (iCRAFT) in our country is being implemented with the support of the World Bank according to the Presidential Resolution of the Republic of Uzbekistan dated August 8, 2023.

The World Bank has transferred first tranche at the amount of US$ 7.5 million for financing the reforms, including the mitigation of impact from the energy tariffs’ reform, and financial support of vulnerable layers of population within the scope of Emission Reductions Payment Agreement (ERPA) component.

The first tranche is a grant to reduce greenhouse gas emissions that will be returned to Uzbekistan as a simulation for international trade of greenhouse gases.

For information: "iCRAFT" project is the first global initiative in the world to support reforms in the field of energy implemented in Uzbekistan with the participation of the World Bank, aimed at reducing greenhouse gas emissions and starting to trade some of them on international markets.

In accordance with the above decision, the allocated funds will be directed to finance measures such as acceleration of the transition of the republic to a green economy, establishment of the monitoring system of greenhouse gas (GHG) emissions, support of the activities of the newly established Energy Market Development and Regulation Agency and "Uzenergosotish" JSC, regulation of the energy sector and implementation of institutional reforms, implementation of pilot projects aimed at supporting families in need of social protection by installing solar panels, improvement of energy efficiency in the country.

The part of this grant allocated to the Energy Market Development and Regulatory Agency of  the Republic of Uzbekistan will be used to attract consultants in the formation of the legislative framework for the development of the energy market and to prepare legal regulations, to prepare technical assignments for the creation of a trading platform with the participation of foreign experts, to improve the skills of employees and conduct training.

In particular, it plays an important role in the development of the new version of the Law of the Republic of Uzbekistan on "Electricity" and the rules for the use of main power networks. With the technical support of experts engaged by the World Bank, the rules of wholesale and retail markets of electricity of the Republic of Uzbekistan based on competition will be developed.