TASHKENT, Uzbekistan, June 25. The World Bank has approved a $150 million concessional credit to support Uzbekistan in implementing a new project aimed at developing its potential in the small hydropower (SHP) sector and strengthening electricity supply across the country, Trend reports.
The project will be implemented with private sector participation, involving local small hydropower developers (SHDs) and banks.
Uzbekistan’s electricity demand is projected to double by 2030, exceeding 120 billion kilowatt-hours. Despite growth in electricity production, around 10 percent of demand remains unmet, resulting in power outages, particularly in underserved regions and rural areas, due to transmission and distribution challenges.
To address this, the government aims to harness the potential of small hydropower plants (SHPPs), ranging in capacity from 100 kW to 5 MW. Built along existing irrigation canals, SHPPs offer a decentralized and cost-effective renewable energy solution with low maintenance requirements. These installations are seen as key to improving energy reliability and promoting regional development.
“The Government of Uzbekistan plans to establish nearly 3,000 SHPPs, increasing installed capacity to 160 MW by 2026 and providing electricity access to an additional 280,000 people. This new World Bank-funded project, to be implemented by the Ministry of Energy between 2025 and 2030, will provide financial support to local developers through participating banks. It will also help attract around $38 million in commercial financing to scale up hydropower infrastructure nationwide,” said Tatiana Proskuryakova, World Bank Director for Central Asia.
By 2030, the initiative is projected to facilitate capital
influx into small hydropower plants (SHPPs) with a cumulative
installed capacity reaching 150 megawatts, yielding in excess of
520 gigawatt-hours of renewable energy on an annual basis. This
initiative is projected to facilitate a decrement of approximately
430,000 metric tons of carbon dioxide emissions.
As of the current assessment, a total of around 270 optimal
locations for the establishment of Small Hydropower Plants (SHPP)
have been delineated, predominantly situated adjacent to
pre-existing irrigation canal infrastructures. It is significant to
highlight that a substantial 93 percent of these installations are
engineered to accommodate power generation capacities ranging from
100 kW to 1,000 kW.
The electricity produced through this initiative will be procured
by JSC Regional Electric Power Networks, thereby guaranteeing a
consistent and sustainable energy supply for residential and
commercial entities, particularly in regions experiencing recurrent
energy deficits.
In addition to augmenting energy accessibility, the initiative is
anticipated to catalyze employment generation, promote the
expansion of indigenous enterprises and small to medium-sized
enterprises (SMEs), and play a pivotal role in regional economic
advancement.
