Uzbekistan to Build Central Asia’s First Pumped-Storage Plants

Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan has become the first country in Central Asia to begin practical implementation of pumped-storage hydropower plant (PSPP) projects. The launch of pilot projects marks a new stage in the development of the national energy system, according to the press service of Uzbekhydroenergo JSC.

The legal framework for the projects was established by Presidential Resolution No. PP-163, “On urgent measures for further development of the hydropower sector and achieving target indicators,” adopted on May 1, 2026. The document defines specific tasks for modernizing the sector, commissioning new capacities, and introducing pumped-storage technologies in line with international standards.

Three plants, 1,400 MW

According to the resolution, three large PSPPs will be built in Uzbekistan by 2032 under public-private partnership arrangements. The Khujakent PSPP with a capacity of 600 MW will be constructed in the Bustanlyk district of Tashkent region, the Aydarkul PSPP with 300 MW in the Farish district of Jizzakh region, and the Karateren PSPP with 500 MW in the Takhtakupyr district of the Republic of Karakalpakstan. The combined capacity of the three facilities will reach 1,400 MW. Annual electricity generation is projected at 2.7332 billion kWh.

In addition to PSPPs, the resolution also provides for the creation of 3,266 MW of additional hydropower capacity, increasing the country’s total hydropower potential 2.4 times to 5,668 MW by 2032.

Financing

The projects will be financed through Uzbekhydroenergo’s own funds and direct foreign investment. The Khujakent PSPP is estimated to cost approximately US$880 million, including US$66 million in company funds and US$814 million in foreign investment. The total cost of the Aydarkul PSPP is US$300.6 million (US$22.5 million in own funds and US$278.1 million in foreign investment). The Karateren PSPP will cost US$550.2 million (US$41.3 million in own funds and US$508.9 million in foreign investment). Uzbekhydroenergo is currently negotiating with foreign investors. Construction is scheduled to begin in 2027, with feasibility studies for all three projects fully prepared.

What PSPPs are and why they matter

Pumped-storage hydropower plants are energy facilities designed to store electricity and manage grid loads. They typically consist of two reservoirs — an upper and a lower one. During periods of excess electricity supply, water is pumped from the lower reservoir to the upper one. During peak demand, the water is released back through turbines to generate electricity. Because of this function, PSPPs are often referred to as “natural batteries.”

Unlike conventional hydropower plants, PSPPs both generate and store energy. Their efficiency ranges from 70% to 85%, making them one of the most efficient large-scale energy storage technologies. Their output typically ranges from 100 MW to 3,000 MW, and operational lifespans can reach 50 to 100 years. Some units can reach full capacity within minutes, which is critical for emergency grid stabilization.

PSPPs also complement renewable energy sources by storing surplus electricity generated from solar and wind power. From an environmental perspective, they are considered relatively clean technologies, as they do not involve fuel combustion and produce minimal CO₂ emissions during operation.

Sector transformation

As part of the ongoing strategy, Uzbekhydroenergo JSC is expected to undergo a structural transformation from a traditional electricity producer into a modern system operator managing energy balance, regulating capacity, and ensuring grid stability.

Currently, hydropower accounts for around 10–14% of Uzbekistan’s total electricity generation. Experts note that as the share of renewable energy grows, demand for storage technologies will continue to increase.

In this context, PSPPs are seen as a key component of the future energy system — not only for Uzbekistan but for the entire Central Asian region.