Issues on increasing energy efficiency and energy market development discussed

According to international experts’ analysis, Uzbekistan is among the most energy-intensive countries. In particular, almost 50 percent of the country’s final energy consumption is in buildings, and energy consumption per square meter is several times higher than in European countries. 

In this regard, a separate agency was established last year to implement systemic reforms in energy efficiency. The new structure is responsible for reducing energy consumption in the economy by at least 20 percent by 2030 and by 15 percent in state entities and social organizations. 

The agency’s 2026 work plans were reviewed during the presentation.

Most buildings in the country were constructed in the 60s and 70s, and their energy losses remain high. In this regard, significant work is planned to increase the energy efficiency of social facilities and residential areas. This year, 150 billion UZS in subsidies and compensation will be allocated to these objectives. 

It was noted that in the course of increasing energy efficiency of social facilities, with the count of over 30 thousand in the country, it’s necessary to pay special attention to the expansion of participation of international financial institutions and attracting private investments. 

Therefore, as part of this year’s investment program, 770 social objects will be modernized to meet energy-efficiency standards. To this end, $264 million in international financial institution funds will be secured. 

Issues related to the development of mechanisms for generating income through energy savings – the development of energy service companies (ESCOs) and the creation of a corresponding market – were also discussed.

Plans were reported for the widespread use of digital technologies and artificial intelligence in conducting energy audits of buildings and in designing and modeling facilities in line with energy efficiency standards.

Specific plans to improve energy efficiency in the industrial sector were also outlined. In particular, solar panels are planned to be installed at 142 textile enterprises this year. This will enable enterprises to save 722 million kilowatt-hours of electricity and 693 billion UZS. There are also plans to modernize 300 pumps in the drinking water supply system.

Particular attention is paid to problems in the centralized heating system. The current high level of energy losses is due to the wear and tear of some boiler rooms and heating networks. In this regard, as part of the modernization of boiler rooms and heating systems and their conversion to a closed system, it is planned to install 400 individual heating points and renovate at least 100 kilometers of heating networks this year.

The responsible persons have been tasked with developing energy-efficiency standards and effective regulations for the construction, repair, and renovation of buildings.

The measures taken to introduce competitive market mechanisms in the electricity sector were discussed at the presentation.

In particular, the transfer of low-voltage networks to the private sector will begin in Samarkand region, and in the next stage, it is planned to scale this practice to Andijan, Jizzakh, Namangan, Syrdarya, Tashkent regions and the city of Tashkent. This is expected to significantly reduce losses by attracting investment in network upgrades.

Information was provided on the progress of work to establish a wholesale electricity market.

To date, a list of wholesale consumers who consume more than 10 million kilowatt-hours of electricity annually has been compiled. For these enterprises, it has been proposed to introduce a wholesale electricity procurement system through direct contracts with hourly pricing.

Work is currently underway to create separate regulators for the energy and utilities sectors. Based on foreign experience, a proposal has been put forward to create a single regulator.

After approving the proposals, the President emphasized the importance of improving energy efficiency, rational use of energy resources, and creating a competitive energy market, and issued appropriate instructions to the responsible persons.

The prosecution and internal affairs authorities are tasked with ensuring strict compliance with legal requirements and the inevitability of liability in the areas discussed, and with working closely with local authorities to ensure the unconditional implementation of the envisaged measures.