TASHKENT, Uzbekistan, May 19. The World Bank’s Board of Executive Directors has approved a $100 million concessional credit to help Uzbekistan integrate renewable energy into its electricity distribution networks and enhance power supply reliability in key regions, Trend reports.
This financing marks the World Bank’s first-ever Program-for-Results (PforR) financing in Uzbekistan.
Uzbekistan’s energy sector faces significant challenges, including technical distribution losses of around 13 percent as of 2024, primarily due to outdated infrastructure. Over half of the country’s distribution network facilities have exceeded their 30-year operational lifespan, resulting in frequent power disruptions.
To address these inefficiencies, the financing will support efforts to modernize the distribution networks, a critical step in Uzbekistan's ambitious goal of deploying 25 gigawatts of renewable energy generation by 2030. Without necessary upgrades, the existing power system would be unable to handle the planned renewable energy expansion.
The investment will also focus on reducing commercial losses within the energy sector, which are a significant fiscal burden for the government. As part of the project, reforms to improve the operational and financial sustainability of the distribution network are underway to attract private investment and ensure long-term success.
"The World Bank’s financing will help modernize Uzbekistan’s electricity distribution infrastructure through 2030, with total investment needs estimated at $3 billion," said Tatiana Proskuryakova, World Bank Director for Central Asia. "We hope that other development partners and private investors will support REPN in this important initiative."
With $150 million in combined financing from the World Bank and Uzbekistan's Regional Electric Power Networks (REPN), the project will enhance the integration of renewable energy and ensure a stable electricity supply in regions like the Republic of Karakalpakstan and Surkhandarya. Key improvements include:
- Construction and modernization of 6,000 km of low-voltage distribution lines.
- Replacement of 1,200 distribution transformers, with a total capacity of 250 megavolt-amperes (MVA).
- Installation of 150,000 smart meters to reduce commercial electricity losses.
- Deployment of 4,000 concentrators for the future automation and digitalization of the networks.
Additionally, the program will strengthen REPN’s operational capacity and financial sustainability, focusing on better planning, financial performance, and corporate governance.
By 2029, the program aims to:
- Achieve a 90 percent customer satisfaction rate with REPN’s service quality.
- Expand distribution network capacity to integrate up to 50 megawatts of renewable energy.
- Reduce greenhouse gas emissions by up to 450,000 tons of CO₂ annually.
- Increase female representation in technical and managerial roles from 9 percent in 2025 to 14 percent.
This initiative represents a critical step toward modernizing Uzbekistan’s energy infrastructure and advancing its renewable energy goals.
