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Economy 02/06/2025 Uzbekistan’s Energy Transformation: A Sustainable Shift Toward a Market Model and Green Growth

Uzbekistan’s Energy Transformation: A Sustainable Shift Toward a Market Model and Green Growth

Tashkent, Uzbekistan (UzDaily.com) — Since 2017, Uzbekistan has been carrying out large-scale reforms in its energy sector aimed at enhancing efficiency, modernizing infrastructure, and progressively transitioning to market-based regulatory mechanisms.

During this period, a robust legal and institutional framework has been established: eight key laws and over 90 presidential and cabinet decrees have laid the foundation for deep structural transformation in the sector.

As a result, energy production has grown significantly. Electricity generation rose by 38%, from 59 billion kWh in 2016 to 81.5 billion kWh in 2024. Per capita generation increased by 18%, reaching 2,200 kWh. Over the past seven years, Uzbekistan has commissioned 11,000 MW of new generation capacity — three times more than in the entire previous 25-year period.

The country’s economic growth has been accompanied by a reduction in energy intensity. From 2017 to 2024, Uzbekistan’s GDP expanded by 55%, while energy consumption per unit of GDP decreased by 7.4%. This indicates a more energy-efficient economy that creates more added value with lower energy inputs — with electricity consumption now at 56.8 kWh per one million soums of GDP.

Energy infrastructure has also seen major improvements. Since 2017, over 54,800 kilometers of distribution networks and 17,200 transformer stations have been modernized, significantly improving power supply to more than 8,000 settlements across the country. By contrast, only 9,300 kilometers of lines and 4,800 transformer stations were upgraded between 1991 and 2016.

A particular priority has been placed on renewable energy development. By the end of 2024, Uzbekistan had launched 14 solar and 3 wind power plants across 10 regions, with a total installed capacity of 4,100 MW. These facilities generated 4.9 billion kWh of green electricity in 2024.

These achievements underscore Uzbekistan’s commitment to sustainable development and highlight the effectiveness of a systemic approach to energy modernization — ensuring the sector’s long-term reliability, environmental sustainability, and economic competitiveness.

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