Tashkent, Uzbekistan (UzDaily.uz) — From 1 January 2027, Uzbekistan will launch the first stage of its transition to a wholesale and retail electricity market through “purchases based on bilateral contracts”. Large consumers will be able to buy electricity directly from private producers at prices agreed by the parties, while small and micro power plants will be able to sell electricity to enterprises in their respective regions.
The market rules for this stage were approved by Cabinet of Ministers Resolution No. 527 dated 30 September 2026.
The document was adopted to implement the Law “On Electric Power Industry” and is based on the concept for a phased transition to wholesale and retail electricity market mechanisms for 2023–2030, approved by Presidential Decree No. UP-166 dated 28 September 2023.
Who can sign direct contracts
Bilateral contracts in the wholesale market will be concluded between independent producers and large consumers. The rules define an independent producer as a private enterprise operating under a licence that has not signed an agreement for the long-term guaranteed purchase of electricity.
A large consumer is defined as an enterprise connected to networks with a voltage of 6 kV or higher and consuming at least 10 million kWh of electricity per year. Budget-funded and municipal organizations, water supply facilities and pumping stations financed from the budget, farms and mobile network operators are excluded from this definition.
In the retail market, small and micro power plants with a capacity of up to 5 MW will be able to sell electricity at contract prices to consumers connected to the distribution system operator’s networks in the same region — the Republic of Karakalpakstan, a region or Tashkent. Household consumers are excluded.
Contract terms
Prices under bilateral contracts will be freely negotiated. A contract may run for no more than one year, while supply volumes will be planned and paid for on an hourly basis. Contract terms must comply with dispatching requirements and network connection rules.
A producer may conclude several contracts with different buyers, including separate contracts for each of its power plants, but total sales cannot exceed the plant’s actual generation. A large consumer may also purchase electricity from several producers, provided that total purchases do not exceed its actual consumption. The parties will determine by contract how electricity transmission and distribution costs are allocated between them.
A contract will take effect once it is registered by the market operator. At this stage, the operator’s functions will be performed by Uzenergosotish JSC, the central purchaser, whose shares are fully owned by the state. Trading operations will be conducted using the CAS and Billing systems of Regional Electric Networks JSC.
What will happen to remaining volumes
Electricity not sold under direct contracts will be purchased at regulated tariffs by the central purchaser, and on the retail market by the designated supplier. Buyers will also purchase additional volumes when their contracted supplies are insufficient. Power plants with a state ownership share of 50% or more will continue to sell all their electricity to the central purchaser at regulated tariffs.
Consumers, including large consumers, will be able to sell surplus electricity generated by their own renewable energy installations at a regulated tariff. The central purchaser will be prohibited from granting anyone unjustified benefits, preferences or discriminatory conditions.
Volume reconciliation and schedules
The market operator will check hourly contract schedules daily. Sales volumes cannot exceed the buyer’s planned purchase volume, while purchases cannot exceed its planned consumption. If discrepancies are identified, the parties must submit corrected data by 11 a.m. on the day preceding delivery. If they fail to do so, the operator will adjust the volumes itself using established formulas and send the agreed schedules to the parties by noon.
Solar and wind power plants, energy storage systems and large consumers will be required to submit daily forecasts of capacity for the following day to the system operator by 10 a.m. On the day of delivery, they must provide forecasts four hours, one hour and 15 minutes ahead. If actual generation or consumption deviates from the forecast beyond the permitted level, the system operator may limit capacity. Power plants and large consumers must report accidents and changes in equipment status within five minutes.
Private management of networks
The rules allow facilities belonging to a distribution system operator, or a stake in its charter capital, to be transferred to the private sector under trust management. Payments for distribution services in such cases will be made under the relevant service agreements.
Disputes
The Agency for Regulation and Development of the Energy Market will monitor the wholesale market. The market operator will publish a register of participants, actual electricity purchase and sales volumes and market performance reports on its website, and will retain the data for at least five years.
Market participants will first attempt to resolve disputes among themselves and may then apply to the agency. Within two working days, the agency will schedule a discussion, which must take place within five working days of the application. If no agreement is reached within 30 days, the applicant may take the dispute to court.
The agency, together with ministries and government agencies, has been instructed to bring their regulatory documents into line with the resolution within two months.
