President Orders Reduction of Energy Consumption and Creation of Competitive Electricity Market

Tashkent, Uzbekistan (UzDaily.com) — On 14 January, President Shavkat Mirziyoyev reviewed a presentation on improving energy efficiency and introducing market mechanisms in the electricity sector.

According to analyses by international experts, Uzbekistan is among the most energy-intensive countries: nearly half of final energy consumption is accounted for by buildings, and energy use per square meter significantly exceeds that of European nations.

Last year, a specialized agency was established to implement systemic reforms in energy efficiency. Its mandate is to reduce energy consumption in the economy by at least 20 percent and in government and social institutions by 15 percent by 2030.

For 2026, a large-scale modernization of social facilities and residential areas is planned, with 150 billion soums allocated for subsidies and compensations. Special attention will be given to attracting international financial institutions and private investment. Under the investment program, 770 social facilities will be modernized according to international energy efficiency standards, with US$264 million in funding mobilized.

Mechanisms for generating income through energy savings are also being considered, including the development of energy service companies (ESCOs) and the creation of a corresponding market. Digital technologies and artificial intelligence will be actively used for energy audits, building design, and modeling.

In the industrial sector, 142 textile enterprises will be equipped with solar panels, saving 722 million kWh of electricity and 693 billion soums. Additionally, 300 pumps in the drinking water supply system will be upgraded.

The centralized heating system will receive special attention. As part of modernization efforts, 400 individual heat points will be installed and at least 100 kilometers of heating networks upgraded. Energy efficiency standards for the construction, repair, and renovation of buildings will also be developed.

In the electricity sector, the transfer of low-voltage networks to the private sector was discussed. The first phase will begin in the Samarkand region, followed by scaling to Andijan, Jizzakh, Namangan, Syrdarya, Tashkent regions, and the city of Tashkent. The reform is expected to reduce losses by attracting investment for network upgrades.

Progress was also presented on the formation of a wholesale electricity market, including a list of consumers with annual consumption exceeding 10 million kWh, for whom a system of direct contracts with hourly pricing will be introduced. The creation of separate regulators for the energy and utilities sectors is under consideration, with the possibility of merging them into a single authority.

The President approved the proposals, emphasizing the importance of rational energy use, improving energy efficiency, and creating a competitive electricity market. He issued instructions to responsible officials and tasked the Prosecutor’s Office and law enforcement agencies with ensuring strict compliance with legislation, enforcing accountability, and closely coordinating with local authorities in implementing the measures.