Tashkent, Uzbekistan (UzDaily.uz) — Uzbekistan’s hydropower sector continues to expand its generating capacity, advance investment projects and introduce modern technologies.
The number of hydropower plants in the country has increased from 36 to 106 in recent years, bringing total installed capacity to 2.5 GW. In the first nine months of 2026, Uzbekhydroenergo JSC generated 6.64 billion kWh of electricity, achieving 120% of its nine-month production target for the first time.
These figures were among the main topics discussed at a press conference titled “Uzbekhydroenergo JSC: Reforms in the Sector, Achievements and Prospects for Hydropower Development”, held on 3 November at the Media Content Training Centre under the Administration of the President of Uzbekistan. The company’s management representatives outlined its operating results, investment projects, modernisation of existing facilities and plans for further sector development.
Record electricity generation
Hydropower development is an important part of Uzbekistan’s state policy on energy security and the transition to cleaner energy sources.
The sector has undergone extensive modernisation in recent years. The number of hydropower plants has risen from 36 to 106, while installed capacity has reached 2.5 GW. New hydropower plants, the development of the hydropower potential of rivers and canals, and the expansion of small-scale and micro-hydropower have all contributed to this growth.
According to figures presented at the press conference, Uzbekhydroenergo generated 6,642.7 million kWh of electricity between January and September 2026. The company achieved 120% of its production target, while output increased by 24% compared with the same period last year.
The value of electricity generated reached 3 trillion soums. One of the company’s most significant achievements was a daily generation figure exceeding 50 million kWh for the first time in its history.
The production figures reflect the expanding capabilities of existing hydropower facilities and improvements in the efficiency of operational processes.
Investment and construction of new energy facilities
Attracting investment remains a key factor in the sector’s further development. In the first nine months of 2026, Uzbekhydroenergo invested US$151.9 million, equivalent to 110% of its target.
Of this amount, US$48.7 million came from direct foreign investment, representing 141% of the target. A further US$103.2 million was allocated from the company’s own funds.
The investment is being used to build new energy facilities, expand generating capacity and modernise existing infrastructure.
Nine energy projects with a combined capacity of 74.3 MW were commissioned during the year. These included the Kugay-1, Kugay-2 and Beshkurgan hydropower plants on the Big Andijan Canal; the YuFK-3 hydropower plant on the South Ferghana Canal; and the Rabat, Chappasuy and Tamshush hydropower plants on the Oksuv River.
The 20 MW Charvak wind power plant, built using grant funding, and the Zarchob-3A micro-hydropower plant were also commissioned.
The projects added new generating capacity and created around 120 jobs. The expansion of energy infrastructure is therefore contributing not only to higher electricity output but also to broader economic opportunities in the regions.
Localisation and domestic manufacturing
Another area of the company’s work involves expanding industrial production, increasing localisation and reducing dependence on imported equipment.
In the first nine months of 2026, enterprises within the Uzbekhydroenergo system produced industrial goods worth 576.3 billion soums. Output reached 108% of the target, representing growth of 13% year on year.
Under the localisation programme, eight projects generated products worth 177.2 billion soums, equivalent to 125% of the planned figure.
Optimisation of production and administrative costs also helped the company save 156.4 billion soums.
UzHydroPower, an enterprise within the company’s structure, plays a particular role in this area. Under the Made in Uzbekistan national brand, it manufactures hydropower units with capacities of up to 40 MW, as well as spare parts for hydropower equipment.
The enterprise operates in three shifts, producing equipment and components for the construction of new hydropower plants and the modernisation of existing facilities.
Developing domestic manufacturing is strategically important for building Uzbekistan’s own technological base in hydropower, increasing localisation and strengthening the country’s industrial capacity.
Digitalisation and artificial intelligence
Modern hydropower increasingly relies on digital solutions, automation and efficient water resource management.
Uzbekhydroenergo is working to introduce information and communication technologies, develop digital management systems and apply artificial intelligence.
In particular, the company is developing and improving tools to forecast water flows at hydropower facilities, automate production processes and support management decisions based on real-time data.
These technologies are expected to improve the accuracy of electricity generation forecasts, enable more efficient allocation of water resources and help the company respond more quickly to changing operating conditions.
Cybersecurity and the protection of energy infrastructure information systems also remain important priorities.
International recognition and investment appeal
The company’s performance is also reflected in assessments by international rating agencies.
Fitch Ratings has affirmed Uzbekhydroenergo’s long-term credit rating at BB with a Stable Outlook, while assigning the company a standalone credit profile of b+.
Sustainable Fitch has also maintained the company’s ESG Entity Rating at 2, while its overall score increased from 79 to 80 points.
These assessments reflect the company’s financial position, its approach to environmental and social responsibility, and the quality of its corporate governance.
International ratings are particularly important for the hydropower sector, as they can strengthen investor confidence and broaden access to long-term financing.
International cooperation and workforce development
Further development of the sector will involve expanding international technological cooperation. Specialist companies and experts from Türkiye, Iran and the Russian Federation are participating in the design of prospective hydropower facilities.
The company is also strengthening partnerships with businesses from China and South Korea in the development of modern hydropower units, the introduction of innovative equipment and the automation of production processes.
Cooperation with international financial institutions is also expanding. Financial organisations from the United States, the United Arab Emirates, Türkiye and China have expressed interest in directly financing the company’s projects.
Alongside technological modernisation, considerable attention is being paid to training qualified specialists.
Scientific and practical cooperation with higher education institutions is being developed, while elements of dual education are being introduced to allow students to combine academic study with practical work at production facilities.
This approach aims to build a skilled workforce capable of operating modern hydropower technologies and maintaining new energy facilities.
New priorities for the sector
As noted at the press conference, Uzbekhydroenergo continues to work towards meeting the objectives set out in Presidential Resolutions No. PP-163 and No. PP-298, which provide for further hydropower development, the construction of new facilities and the modernisation of existing plants.
The results for the first nine months of 2026 show that hydropower is becoming an increasingly important component of Uzbekistan’s national energy system. Further progress will depend not only on commissioning additional capacity but also on the efficient use of water resources, technological modernisation, financial stability and the quality of management.
Amid rising electricity demand, hydropower is gaining importance as a renewable energy source that can complement other generating capacity and improve the resilience of the power system.
At the end of the press conference, Uzbekhydroenergo management representatives answered questions from journalists and bloggers, explaining the progress of ongoing projects, key production figures and the future priorities for the development of Uzbekistan’s hydropower sector.
