Uzbekistan Approves New Support Mechanisms for Small Hydropower

Tashkent, Uzbekistan (UzDaily.uz) — Uzbekistan will introduce new support mechanisms and simplified procedures to advance its network of small and micro-hydroelectric power plants, according to Presidential Decree No. 298 signed on 19 August 2026.

Under the decree, a dedicated digital platform will be developed by 1 February 2027 to identify prospective small and micro-hydro sites, as well as coordinate, monitor, and manage project implementation and ongoing operations.

The document provides for establishing unified rules for private sector participation in small and micro-hydroelectric projects. In addition, standardized guidelines covering project design, construction, commissioning, and plant operation will be introduced, incorporating mandatory environmental and social compliance standards.

To select developers for small and micro-hydro projects with capacities of up to 5 MW, electronic auctions for power purchase agreements will be launched on the E-auksion trading platform, establishing both starting and floor prices based on official tariffs for Category II electricity consumers.

For micro-hydro plants under 500 kW, the starting price will be set at 150% of the Category II consumer tariff, with a minimum price floor of 50%. For small hydro facilities rated between 500 kW and 2 MW, the starting and floor prices will stand at 120% and 40% of the base tariff, respectively. For plants with capacities ranging from 2 MW to 5 MW, the starting price will be set at 100%, and the minimum floor price will be 30% of the relevant tariff.

Simplified regulations will apply to micro-hydro projects with a capacity of up to 100 kW, classifying them under Category II construction risk.

Micro-hydro installations with a capacity of up to 50 kW and a structure volume not exceeding 300 cubic meters will be exempt from mandatory urban planning documentation expertise and state architectural and construction supervision. Project developers will also be permitted to execute construction works in stages based on the electrical section of the building design.

The decree also addresses workforce training for the sector. Starting from the 2026/2027 academic year, higher education institutions in Uzbekistan will introduce a dual education system for small-scale green energy specializations, including small-scale hydropower generation.