Tashkent, Uzbekistan (UzDaily.uz) — Representatives of international financial institutions and foreign energy companies have positively assessed new approaches to developing Uzbekistan’s energy sector presented at President Shavkat Mirziyoyev’s open dialogue with investors on 16 October.
They highlighted long-term planning, improved energy efficiency, expanded private investment, the establishment of an Investors’ Council and the training of local specialists as key priorities.
World Bank’s energy portfolio reaches US$1.4 billion
Nadji Benhassine, the World Bank’s regional director, said the World Bank Group’s investment portfolio in Uzbekistan’s energy sector had reached US$1.4 billion. He said the bank had supported industry reforms for several years by providing technical assistance and financing.
Benhassine noted reductions in technical and electricity distribution losses, as well as progress towards the sector’s financial sustainability. He described the first meeting of the Investors’ Council as an important step towards attracting further private capital, which remains in considerable demand.
IFC has invested and mobilised more than US$2 billion
Neil McCain, the International Finance Corporation’s (IFC) regional manager, recalled that the organisation had no investment projects in Uzbekistan’s energy sector in 2020. Since then, the IFC has invested and mobilised funding from other investors totalling more than US$2 billion for seven projects.
According to McCain, public-private partnership projects have helped reduce electricity generation costs. However, he noted that the country’s economy remains highly energy-intensive.
To develop the sector further, the IFC representative said Uzbekistan needed to improve energy efficiency, reduce losses and curb inefficient resource consumption. Energy resources should also be directed towards activities where they can make the greatest contribution to productivity growth and business development.
EBRD highlights renewable energy target
Şule Kılıç, director of the European Bank for Reconstruction and Development’s Eurasia Energy Department, identified the president’s target of increasing the share of renewable energy in Uzbekistan’s energy mix to 54% by 2030 as an important benchmark.
She said companies needed clear long-term goals and a well-defined strategy for the energy sector to make investment decisions. Such guidance helps investors assess project prospects and determine whether to commit capital.
ADB highlights direct engagement with investors
Kanokpan Lao-Araya, the Asian Development Bank’s country director for Uzbekistan, drew attention to the initiative to establish a mechanism for direct engagement with investors. It is intended to ensure that emerging issues can be reviewed promptly and addressed effectively.
Lao-Araya said the energy sector was becoming increasingly important for improving living standards amid rapid economic growth and population expansion. She also noted that the ADB had allocated substantial funding in previous years to support reforms and implement investment projects in the country.
EDF: grid development and new energy projects
Cedric Leboucher, EDF’s executive vice-president for Europe, the Middle East and Central Asia, highlighted the continuation of the energy transition, the holding of tenders, hydropower development and the modernisation of distribution networks among the priorities outlined by the president. He said the company was ready to contribute to these areas.
Leboucher said EDF was building two combined-cycle power plants in Uzbekistan, one of which was already undergoing commissioning. The company has also signed an agreement to develop a wind power plant with an energy storage system in the Bukhara Region.
Investors’ Council as a platform for practical solutions
Sayyid Aiman Al Busaidi, chairman of the board of Voltamp Energy SAOG, proposed using the Investors’ Council to address specific challenges arising during the implementation of energy projects. He identified the development of local supply chains and the upgrading of specialists’ skills as priorities.
Al Busaidi stressed that the company makes investment decisions based on the commercial viability of projects.
Mahesh Kumar, head of special projects and global affairs at Reliance Industries Ltd, said the president had called for expanding the geographical reach of solar power and other new energy projects. According to Kumar, energy initiatives should benefit both investors and local communities. At the same time, efforts to attract capital must be accompanied by the development of local capabilities.
Taro Okamura, Sojitz Corporation’s regional president for the Middle East, Africa and Central Asia, said the company was participating in the construction of the 1,600 MW Syrdarya combined-cycle power plant and the 1 GW Navoi wind power plant.
Okamura said participation in the Investors’ Council meeting helped the company better understand global trends that Uzbekistan takes into account when shaping its energy policy.
