Tashkent, Uzbekistan (UzDaily.com) -- The Embassy of Uzbekistan in the UK, together with the Ministry of Energy of Uzbekistan and the European publication Business New Europe, held an online forum "Dynamics of Change in Uzbekistan: Reforms and Investment Opportunities in the Energy Sector", Dunyo news agency reported.

Speakers at the webinar were Deputy Energy Minister Bekzod Normatov, Deputy Director of the Project Office of the Ministry of Energy Bahrom Umarbekov, Advisor to the UK Department of International Trade Shozey Jafferi, Vice President of the Saudi company ACWA Power Tom Tyirlink, Advisor to the Chairman of Enter Engineering Nigora Ibadova and Head branch of Deutsche Bank for work with corporate clients in the CIS countries Inna Oleinik.

Opening the event, the Ambassador of Uzbekistan to Great Britain Said Rustamov spoke about the large-scale and irreversible reforms being carried out in our country aimed at liberalizing the economy and modernizing the country. The specific achievements of economic transformations, Uzbekistan’s commitment to reforms on the transition to market mechanisms of work, despite the pandemic, were emphasized. The participants were also informed about the planned large-scale restructuring and privatization of state-owned enterprises, the upcoming reforms in the banking and agricultural sectors, and active work on the country’s accession to the WTO.

Deputy Energy Minister Bekzod Normatov noted that the energy sector is on the priority list of reforms, since the development of this sector is extremely important for ensuring sustainable economic growth and solving social problems. In this regard, the government pays special attention to the development of the oil and gas sector, modernization of the electrical system and a gradual transition to renewable energy sources.

As Bekzod Normatov noted, the main goal of accelerated reforms in the energy sector is to increase the efficiency of the industry and ensure its transparency by moving to market mechanisms. In this regard, active work is underway to create an appropriate legal and regulatory framework, improve tariff policy, improve the management system, and train highly qualified personnel.

Bakhrom Umarbekov, Deputy Director of the Project Office of the Ministry of Energy, noted that by 2030 Uzbekistan plans to increase electricity production from the current 15 gigawatts to 30 GW. An investment of about US$20 billion is planned to increase production capacity, modernize the transmission and distribution system. The bulk of this investment is expected to come from private businesses.

In order to switch to market relations and attract investments, the law “On Electricity” in a new edition, a model of a competitive electricity market and the Electricity Grid Code are being developed. Agreements have been signed with a number of foreign companies, in particular Masdar (UAE), ACWA Power (Saudi Arabia), Aksa Energy (Turkey) and others, on the creation of new production facilities, including wind and solar energy.

According to Shozey Jafferi, adviser to the UK Department of International Trade, reforms in Uzbekistan, including in the energy sector, are proceeding at an impressive pace. This opens up great investment opportunities for foreign companies, including British ones. He noted that the government of the United Kingdom is interested in supporting the participation of British companies in Uzbekistan’s projects in the field of "green energy". British companies can participate in the production, transportation and storage of electricity, as well as design, consulting, development of regulations in this area, and training.

Vice President of ACWA Power Tom Thirlink noted that over the past few years, Uzbekistan has created comfortable conditions for the work of foreign investors, who feel support at all levels. According to him, investment in the energy sector of Uzbekistan is very promising for a number of reasons. First, there is political stability in the country and there are no risks for investments. Second, the regulatory framework is based on international standards and creates a stable investment climate. In particular, new laws on investments, public-private partnerships, currency regulation and others have been adopted. Third, the increasing energy needs of a dynamically growing national economy are helping to expand market and business opportunities.

Speaking about the prospects of the Uzbek economy for investors, the representative of Enter Engineering, Nigora Ibadova, noted that over 8 years of activity in the republic, the company has implemented 32 projects, turning from an ordinary subcontractor into a full-fledged participant in consortia and even a general contractor of large projects. The company is actively expanding its activities from the energy and industrial sectors to the civil construction sector. At the same time, special attention is paid to the training of local personnel, including sending promising specialists to study at prestigious foreign universities.

The representative of Deutsche Bank Inna Oleinik noted that international financial institutions also recognize the positive changes in Uzbekistan and are interested in participating in financing and lending projects in the country, including energy. At the same time, she noted the importance for banks to be able to assess the potential risks of lending, as well as access to a reliable and transparent customer database. In terms of financing, Deutsche Bank pays great attention to the impact of projects on improving ESG performance - environmental, social and governance, she said. Currently 50% of projects financed by Deutsche Bank fall into this category, and by 2035 this figure will be 99%.