Tashkent, Uzbekistan (UzDaily.com) -- A presentation of the modern development of the energy sector of Uzbekistan was held on 12 February 2022 at the World Expo held in Dubai.

In the national pavilion of Uzbekistan, the delegation of the Ministry of Energy of the country presented the current stage of reforming the fuel and energy complex (FEC) of Uzbekistan with special emphasis on the intensive development of renewable energy projects.

As noted in the presentation, the goal of reforming the energy sector, as well as modernizing and increasing generating capacities, is to ensure the energy security of Uzbekistan, on which a stable energy supply of the current and future population of the country, its growing economy is based.

Over the past 5 years, in the energy sector of the country, the processes of transferring the work of the industry in the conditions of market relations, real competition, as well as updating the infrastructure, the state of which has not been given due attention over the past decades, have been intensively going on.

In order to meet the growing demand for energy resources of consumers of the republic, the Ministry of Energy and the leadership of the country, based on expert analysis, set the task of increasing electricity generation by 2 times by 2030, that is, up to 135.0 billion kWh (the indicator for 2021 is 71 .4 billion kWh).

So, according to the data for 2021, the number of consumers is 7 million 515.9 thousand, which is 1194.8 thousand more than in 2016. Of these, 356.3 thousand are legal consumers, the number of which increased by 88.9 thousand. 

The indicator of average daily electricity consumption in the country in 2016 was 142.1 million kWh, while in 2021 it is already 205.1 million kWh, or 44.3% more. 

In recent years, much attention has been paid to the renewal and modernization of electrical networks and transformer points, that is, the infrastructure that serves to deliver a growing amount of electricity to the consumer. Over the past five years, up to 40 thousand 700 kilometers of low-voltage power lines have been modernized and built, which is almost 4.4 times more than in the period from 1991 to 2016, that is, the previous 25 years (9 thousand 300 km.)

Since 2017, 15% of the total number of transformer points, which is almost 13 thousand units, have been modernized and updated.

In the current 2022 alone, 28,000 kilometers of low-voltage power lines will be repaired (or 6 percent more by 2021) and 9,700 transformer substations (an increase of 8 percent). Infrastructure renewal tasks continue to be implemented at an intensive pace; by 2026, 80,000 kilometers of power transmission lines and more than 20,000 transformers should be gradually modernized.

During the presentation, a special place was given to the growth of generation (electricity production), including with the participation of renewable energy projects. It was noted that in the construction of solar photovoltaic stations (PVP) an important role is played by cooperation with the leading companies of the United Arab Emirates UAE, such as Abu Dhabi Future Energy Company - Masdar.

On the basis of the public-private partnership Masdar, a project is currently being implemented to build a PV power plant with a capacity of 100 MW in Navoi region. This Emirati company is also the winner of tenders to identify investors for FES projects in Samarkand and Jizzakh regions.

Also, by the end of this year, 3 HPPs with a total capacity of 21 megawatts will be put into operation in the Samarkand region. The process of modernization of the Tupalang, Buzsuy, Akkava and Khishrav HPPs is underway, the capacity of which will increase by 152 megawatts in total.

By 2030, the task was set to bring the volume of renewable energy in generation up to 25%.

Currently, the bulk of electricity (up to 90%) is produced at the country’s thermal power plants. The available production capacity of the energy system today is 14,563 MW. In 2000, this figure was 7 thousand 750 MW, in 2016 - 10 thousand 830 MW. That is, over 16 years, 3,000 MW have been practically commissioned, and the same number - only in recent years. Such an increase in production capacity in 2017-2021 was achieved mainly due to the commissioning of new combined cycle gas plants (CCGT) at the Navoi, Talimarjan, Tashkent thermal power plants, as well as the Takhiatash thermal power plant and the Fergana thermal power plant. A new Turakurgan TPP with a capacity of 900 MW was also launched.

In total, thermal and solar power plants with a total capacity of 1,474 MW will be put into operation in Uzbekistan by the end of this year. As a result, the total capacity of the energy system will exceed 16 thousand megawatts, which is 53% higher than in 2016.

The increase in generation, including through the construction and commissioning of new power plants, continues, and 2022 can be called unprecedented in this direction.

This work will be continued, and its result should be an increase in the capacity of the country’s energy system to 27,400 MW by 2026 and to 32,000 MW by 2030.

During the presentation, the role of introducing modern energy-saving technologies and equipment was noted, in which cooperation with recognized international leaders in this area plays a significant role.

The process of forming a legislative framework for ensuring the energy security of the country and developing the energy sector based on a market economy is underway intensively. This will allow authoritative international companies to participate even more actively in the energy development of Uzbekistan. A striking example of the market changes that are taking place in the energy sector of the country is the commissioning of new power plants, including thermal (TPP), solar or photovoltaic (PV), wind (WPP), which are being built on a fundamentally new basis for the energy sector of Uzbekistan public-private partnerships (PPP).

PPP-based projects are carried out on a tender, that is, a competitive market basis, while technical assistance to bring the best international experience in tendering is provided by such international financial institutions as: the International Finance Corporation, the Asian Development Bank and the European Bank for Reconstruction and Development.

At the same time, the winner of the tender is responsible for the development of documentation, construction and operation of the new power plant. A long-term agreement is concluded with him on the purchase of generated electricity for a significant period (25 years). As a rule, one of the main criteria for winning the tender is a favorable price offer for consumers on tariffs for the purchase of electricity. Thus, the market rules, which have been intensively introduced over the past 3 years in the energy sector of modern Uzbekistan, make it possible to create healthy competition in this area, where more and more independent electricity producers come, moreover, they have the best international experience.

To date, a total of about 20 power purchase agreements have been signed, which is a significant step in creating a competitive environment in the energy sector. Among the independent energy producers of the company are Total Eren SA (France), Abu Dhabi Future Energy Company - Masdar (UAE), Aksa Enerji Üretim A.Ş. (Turkey), Cengiz Enerji San. ve Tic A.Ş. (Turkey), Hydro Enerji Elektrik Uretim Sanayi A.Ş. (Turkey), ACWA Power (Saudi Arabia), Stone City Energy (Netherlands) and others.

In order to intensify the reform of the electric power industry, a Project Office has been established under the Ministry of Energy of the Republic of Uzbekistan, which, among other things, works with international financial institutions, including the European Bank for Reconstruction and Development, the World Bank and the Asian Development Bank. Involved international experts with extensive experience in reforming the energy sectors of various countries.

The experts of the Project Office developed the Concept, including the sequence of transition to the wholesale competitive electricity market, with the passage of three stages, in the period 2021-2025.

The first stage provides for the liberalization of electric power enterprises and obtaining licenses for private enterprises wishing to sell electricity.

During the second stage of the transition to a competitive wholesale electricity market, an electricity distribution system operator will be created, and the functions of selling electricity to consumers will be gradually transferred to suppliers. Consumers will be able to purchase electricity through an online trading platform or through suppliers who will operate in a competitive environment, which will serve as the best offer for electricity supply.

The third stage is "Intraday (hourly) sales". In accordance with it, on a planned basis, online purchase and sale of excess or deficit volumes of hourly production and electricity consumption will be carried out on the trading floor.

The presentation of the Ministry of Energy at the EXPO exhibition aroused great interest, both in the ongoing reforms and in participation in projects based on PPP. Already today, about 80 investors are participating in energy tenders, which indicates the growing desire of international companies to implement projects in the country.