Major capacities commissioned and a range of new energy facilities launched in Uzbekistan

The event was attended by Minister of Energy and Infrastructure of the United Arab Emirates Suhail Al Mazrouei, Minister of Energy and Natural Resources of the Republic of Türkiye Alparslan Bayraktar, Minister of Energy of the Republic of Azerbaijan Parviz Shahbazov, Minister of Energy of the Kyrgyz Republic Taalaybek Ibraev, as well as representatives of the World Bank, the European Bank for Reconstruction and Development, the Asian Development Bank, the Asian Infrastructure Investment Bank, the Islamic Development Bank, and leading companies including ACWA Power (Saudi Arabia), Aksa Enerji, Cengiz Enerji (Türkiye), Masdar (UAE), China Energy, Datang, Sinoma, Poly (China), EDF, Voltalia, TotalEnergies (France), Siemens Energy (Germany), and Nebras Power (Qatar).

New facilities – 42 new generation, storage and production capacities and other energy infrastructure worth $11 billion, are a part of the major strategy being implemented in our country, aimed at strengthening the potential of national energy.

They include 16 solar, wind, thermal and hydro power plans worth $3,3 billion with the capacity of 3,5 thousand megawatts in Karakalpakstan, and Bukhara, Kashkadarya and Tashkent regions. 

Once they reach full capacity, these facilities will generate 15 billion kilowatt-hours of electricity per year. 

As a result, next year the volume of “green” energy produced in the country will reach 23 billion kilowatt-hours, which will fully meet Uzbekistan’s annual electricity needs.

Most importantly, clean energy will help reduce natural gas consumption by almost 7 billion cubic meters and prevent 11 million tons of harmful emissions from being released into the atmosphere.

Among the projects being launched are 10 energy storage systems with a total capacity of 1,245 megawatts. This will allow to supply an additional 1,5 billion kilowatt-hours of electricity to the grid during peak loads.

Additionally, 11 large substations and 420 kilometers of high-voltage networks are being commissioned, ensuring the stable operation of the energy system.

Important contributions to the economy will be made by the new enterprises Angren Energo, which will produce 15 thousand transformers, and Uzhydropower, which will manufacture 155 hydro units per year.

Speaking at the ceremony, the President expressed confidence that this important event will become another practical step on Uzbekistan’s path toward sustainable development.

- Given the rapid growth of the economy and the increasing needs of the population, we are implementing large-scale reforms in the energy sector. In this area, we have defined two key goals. The first is to ensure reliable and uninterrupted energy supply to all industries and regions. The second is to achieve this primarily through modern, environmentally friendly, and renewable energy sources, - stated the President.

It was noted that in recent years, $35 billion in foreign investment has been attracted to the energy sector, and 9 thousand megawatts of new capacity have been commissioned.

As a result, electricity production has increased from 60 billion kilowatt-hours in 2017 to 85 billion this year.

Of particular importance is the launch of solar and wind power plants with a total capacity of about 5 thousand megawatts, as well as hydroelectric power plants with a capacity of 400 megawatts. This year, the share of “green” energy in total generation will reach 30 percent.

In addition, 2 thousand megawatts of small solar panels have been installed in the private sector, households, and social facilities. This year alone, they generated nearly 2 billion kilowatt-hours of additional renewable energy. Across the country, 69 thousand kilometers of power grids and 14 thousand transformer points and high-voltage substations have been upgraded.

These transformations provide a powerful boost to the development of domestic enterprises. Since the beginning of the year, local manufacturers have supplied construction materials, metal structures, cable products, and electrical equipment for the power plants and networks under construction, as well as provided design, engineering, and construction services totaling $700 million.

For instance, the first hydroelectric power plant of the Naryn Cascade, with a capacity of 38 megawatts, was commissioned entirely using domestic equipment and materials.

The leader of Uzbekistan emphasized that foreign investors and international partners have played a significant role in these achievements and successes.

The Head of State announced that in the next five years, with over $150 billion in foreign investment, it is planned to commission a thousand industrial and infrastructure facilities and create numerous high-paying jobs.

To create attractive conditions for companies operating in emerging sectors such as IT, artificial intelligence, and the Internet of Things, it is planned to establish supercomputer clusters and data centers.

In this context, the Saudi company Data Volt has already begun implementing a project to build a 500-megawatt data center with an investment of $3 billion.

The implementation of such large-scale projects will significantly increase electricity demand—by at least 1,5 times. In this context, the President outlined the country’s further energy development plans.

First, to meet the growing demand for electricity, more than 17 thousand megawatts of renewable energy capacity will be commissioned by 2030. As a result, the share of “green” energy in total generation will reach 54 percent.

To integrate the new capacities into a unified energy system, 6 thousand kilometers of high-voltage power lines will be constructed. Next year alone, 1 thousand kilometers of such lines are scheduled to be laid, along with substations with a total capacity of 6 thousand megawatts.

Second, the expansion of foreign investment through public-private partnerships. Starting this year, the principles of private partnership are applied not only in electricity generation but also in its distribution.

In particular, an agreement has been reached with the Turkish company Aksa Elektrik to transfer the regional power grids of Samarkand to private management. 

The company will take operational control of the network, invest in modernization, and reduce losses by half, which will save an average of $20 million annually.

Similarly, next year investors will be offered management of the electricity networks in Jizzakh and Syrdarya regions, and in 2027 – in Namangan and Tashkent.

Third, there will be active support for the transition to alternative energy sources.

In the new year, solar stations with a total capacity of 107 megawatts will be installed in 300 mahallas based on cooperative initiatives. This social initiative will provide “green” energy to 30 thousand low-income families, who will be able to feed surplus electricity into the grid and earn additional income.

This year, entrepreneurs built 40 megawatts of small and micro hydropower plants. As a result120 million kilowatt-hours of electricity was produced, providing the entrepreneurs with a new source of income. 

Next year, an additional 65 megawatts of small and micro hydropower plants will be developed, significantly improving electricity supply for 80 thousand households.

Fourth, at the recent COP-30 climate conference in Brazil, Uzbekistan made an important commitment under the Paris Agreement – to reduce greenhouse gas emissions by 50 percent by 2035.

Together with the World Bank, Uzbekistan has begun implementing the innovative iCRAFT project for the first time, which accounts for 23 million tons of greenhouse gas reductions achieved by the country. A system for selling carbon units on the international market has also been launched.

It is important to note that this year only, 17 large industrial enterprises have transitioned to the international certification system for “green” energy. Within the next two years, the number of such enterprises is expected to reach 100.

Fifth, the development of partnerships with neighboring countries in creating a unified energy market.

Next year, funding will begin for the Kambarata-1 hydropower plant project in cooperation with Kyrgyzstan and Kazakhstan, aimed at the efficient and joint use of the region’s hydroelectric potential.

The Head of State also highlighted the decisive efforts of the leadership of Azerbaijan and Kazakhstan in the framework of the project to create a “green” corridor for electricity exports to Europe.

- All the projects we are launching today will become a source of sustainable economic growth and open new opportunities for future generations. Thanks to such purposeful steps, we will undoubtedly build a modern energy system of a new type,- stated the Leader of our country.

In conclusion, by pressing a symbolic switch, the President of Uzbekistan launched the operation of 42 energy facilities and the construction of 21 new projects.