Shavkat Mirziyoyev held a meeting on development of electricity sector

Tashkent, Uzbekistan (UzDaily.com) -- On 3 October 2018, President of Uzbekistan Shavkat Mirziyoyev held a meeting dedicated to in-depth analysis of the state of affairs in the power industry, identifying additional measures for the development of the industry.

“The electric power industry is the “engine”of the economy, it is impossible to imagine socio-economic development, our life as a whole, without it,” Shavkat Mirziyoyev said. “Our country has the capacity to generate a total of 14,000 megawatts of energy, 86 percent of which comes from thermal power plants.

However, 84 percent of the capacity of thermal power plants were put into operation almost half a century ago, the existing capacity is only 83 percent.

If in developed countries, 240-260 grams of fuel is consumed to produce 1 kilowatt of energy, then at some stations in our country it consumes twice as much.

As a result of the development of industries, the need for electricity by 2030 will reach 20,000 megawatts.

In our country, electricity is produced mainly by burning natural gas. By 2030, the volume of gas flaring will increase even more, which, under conditions of limited availability of this resource, would mean a waste of a huge amount of this non-renewable energy source.

- The commissioning of a nuclear power plant will be a revolutionary solution in reducing fuel consumption, but it will take another 8-10 years. Therefore, it is necessary to eliminate the existing problems as soon as possible and to drastically develop the industry, the most important thing, to ensure noticeable positive changes in this system in a short time, the President said.

The meeting identified the tasks for the required measures to create additional capacity to generate 12,500 megawatts by 2030, in particular the construction of combined-cycle plants, a nuclear power plant, hydroelectric power plants, modernization of existing facilities, renewal of power units at the Syrdarya, Tashkent, Navoi, Takhiatash thermal power plants, as well as public-private partnership mechanisms in the industry.

The State Investment Committee and Uzbekenergo was entrusted with taking measures to build steam-gas and gas-turbine plants with a capacity of 3,900 megawatts, coal-fired thermal power plants, solar and wind power plants in the city of Angren and Surkhandarya region.

The meeting identified the relevant tasks to accelerate the construction of new power generation facilities.

In this regard, it is indicated that 15 percent of the funds coming from the sale of electricity to finance investment projects and repay credits should be sent from next year.

The Ministry of Finance, the State Committee on Investments and the Uzbekenergo were instructed to identify sources of financing projects.

- The implementation of modernization and reconstruction tasks in the system requires the involvement of the private sector in the sphere on the basis of public-private partnership.

However, the necessary regulatory framework and technical infrastructure are not ready. For example, the question of admission to the power grid of electricity produced by private enterprises is still not resolved.

For example, 60 percent of electricity in Turkey and 20 percent in Korea are produced by private enterprises, the President said.

The Ministries of Economy and Finance, the State Competition Committee and Uzbekenergo have been instructed to involve the private sector in the industry based on the conclusions of international experts, as well as to ensure the development of legal, institutional, technological foundations of the public-private partnership mechanism.

Special attention at the meeting was paid to the fact that the share of networks with a service life of more than 30 years is 62 percent, 57 percent of the lines on distribution networks and 39.6 thousand transformer points need to be updated.

In accordance with the program designed for 2017–2021, this year it is required to modernize 34,000 kilometers of power lines and 7,000 transformer points, in 2019 – 7,000 kilometers of lines and 2,000 transformers.

In this regard, the Fund for Reconstruction and Development of Uzbekistan, the Ministries of Finance and Economy, Uzbekenergo were instructed to provide sources of stable funding in the program of activities.

It was instructed to take appropriate measures to strengthen the financial capacity of Uzbekenergo in order to fulfill its investment obligations. The issue of providing Uzbekenergo with preferences in the form of a three-year extension of the repayment of its principal debt to the Fund for Reconstruction and Development in 2019-2021 was also considered.

It was noted the need to further improve the efficiency of debt collection for the supplied electricity. It is indicated that the Bureau of enforcement should further increase the effectiveness of measures taken to reduce the debt for electricity.

It has been criticized for introduction of an automated energy metering system.

Thus, as a result of the revision of the cost of the contract concluded with a foreign company for the implementation of this system in Bukhara, Jizzakh and Samarkand regions, the implementation of the relevant works is 15 months late from the deadline specified in the approved schedule.

In this regard, it was noted that Uzbekenergo and the State Investment Committee should speed up work on connecting 1.4 million consumers to the automated system in Bukhara, Jizzakh and Samarkand regions.

Instructions were given on introduction of an automated system in other regions in 2019–2021 at the expense of loans from the Asian Development Bank, creation of a single center for automated management of the system, and installation of 5.6 million modern electricity meters in the next three years.

The President of Uzbekistan instructed the relevant ministries and decision-makers to organize the provision of transit services to the power systems of neighboring states, to conduct relevant negotiations, to develop a “road map” on the efficient use of the country’s transit and export potential.

It was underlined that the use of modern technologies in creation of new energy generating facilities, widespread introduction of renewable energy sources should be the main tasks of Uzbekenergo.

Identified important tasks for accelerated development of the industry. It was noted the need for radical improvement of the domestic power industry.