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Overview of main events in Uzbekistan's energy sector in 2025

Economy Materials 18 January 2026 07:08 (UTC +04:00)
Overview of main events in Uzbekistan's energy sector in 2025
Aygun Baliyarli
Aygun Baliyarli
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BAKU, Azerbaijan, January 18. In 2025, Uzbekistan continued its large-scale transformation of the energy sector, focusing on rapid capacity expansion, diversification of generation sources, infrastructure modernization, and the accelerated deployment of renewable and nuclear energy projects.

Over recent years, more than $35 billion in foreign investment has been attracted to the sector, resulting in the commissioning of around 9,000 MW of new capacity. Electricity generation increased from 60 billion kWh in 2017 to approximately 85 billion kWh in 2025, reflecting the country’s growing demand and industrial expansion.

A defining feature of 2025 was the sharp rise in renewable energy. Nearly 5,000 MW of solar and wind capacity, along with around 400 MW of hydropower, are now operational. As a result, the share of green energy in total generation capacity reached 30%, marking a major milestone in Uzbekistan’s energy transition.

January: hydropower pipeline expands; groundwork for major projects

At the beginning of the year, Uzbekistan continued to make progress in electricity. On January 10, Uzbekhydroenergo announced preparations to launch construction of the Upper Pskem Hydropower Plant, with a ceremonial groundbreaking planned for March 10, 2025. The development followed a meeting between Uzbekhydroenergo Chairman Abdugani Sanginov and China Southern Power Grid International (HK) Co., Ltd. (CSGIHK) Chairman Chen Shengran, who confirmed that pre-construction documentation was nearly ready. In parallel, the sides signed a Joint Development Agreement for another key hydropower project—the Khojakent Hydropower Plant in the Bostanlyk district, also expected to start construction within the year.

Alongside hydropower, Uzbekistan significantly expanded its renewable energy agenda through high-level international agreements. On January 14, during President Shavkat Mirziyoyev’s official visit to the United Arab Emirates, Uzbekistan, and the Emirati company AMEA Power signed a package of agreements covering large-scale wind generation and energy storage. In particular, an investment agreement was concluded for the construction of a 1-gigawatt wind power plant in Karakalpakstan, one of the largest wind projects announced in the country. The document was signed by Uzbekistan’s Minister of Investment, Industry and Trade, Laziz Kudratov, and AMEA Power Chairman Hussain Al Nowais.

In addition, AMEA Power signed an investment agreement and a battery storage service agreement for a standalone 300 MWh Battery Energy Storage System (BESS) project, reinforcing Uzbekistan’s strategy to pair renewable generation with storage solutions to strengthen grid stability.

February: small hydro commissioning; industrial solar uptake; storage-backed renewables financing

In early February, Uzbekistan advanced localized hydropower and solar implementation. On February 1, Uzbekhydroenergo commissioned the Hisorak small hydropower plant in Shahrisabz district (Kashkadarya region). The facility has a capacity of 3.5 MW and is expected to generate 17.5 million kWh annually. The project costing $1.5 million was implemented under a localization framework and is expected to save about 5 million cubic meters of natural gas annually, supplying electricity to around 7,300 households.

On February 3, the EBRD announced a long-term senior loan of up to $75 million for a large renewables-plus-storage package in Samarkand and Bukhara regions: 500 MW solar PV and 500 MWh BESS (with interconnection facilities). The project, implemented through ACWA Power Sazagan Solar 2 LLC (a special-purpose vehicle in Uzbekistan), is part of an almost $990 million total cost structure, aimed at scaling renewable generation and improving grid stability through storage.

At the policy level, the government reaffirmed its long-term green energy targets. On February 10, a presidential decree declaring 2025 the Year of Environmental Protection and the Green Economy set out plans to raise the share of renewable energy in electricity generation to 26 percent by 2025 and 40 percent by 2030. The targets are to be achieved primarily through the construction of large solar and wind power plants with a combined capacity of 4.5 GW, underscoring the central role of utility-scale renewables in the country’s energy strategy.

On February 19, the private oil and gas major Sanoat Energetika Guruhi (Saneg) completed the first phase of construction of the Khodjaobod Solar Power Plant in the Andijan region. Phase 1 has 3 MW (DC), includes 5,000 solar panels and 20 inverter transformer substations, and is expected to generate 6 million kWh annually. The second phase is planned to raise capacity to 5 MW. While the volume is modest compared to utility-scale projects, it reflects the broadening participation of domestic industrial actors in solar generation.

March-April: hydropower emerges as a national flagship; climate diplomacy accelerates mega-renewables

In March and April, Uzbekistan reinforced its green energy trajectory by elevating hydropower to a flagship national priority while expanding its renewable pipeline through regional cooperation and international climate platforms.

On March 14, President Shavkat Mirziyoyev approved an agreement on strategic cooperation with Azerbaijan and Kazakhstan in the development and export of green energy, following a trilateral presidential meeting held in November 2024. The agreement assigns the Ministry of Energy as the lead implementing body and lays the groundwork for coordinated renewable development and cross-border transmission across the region.

Institutional reforms accompanied these efforts. On April 2, Uzbekistan announced the establishment of a National Energy Efficiency Agency under the Cabinet of Ministers to coordinate state policy and incentive mechanisms in energy efficiency. Starting from July 2025, the agency will introduce subsidies for energy audits, solar installations, and heat pumps, aimed at stimulating energy-saving investments at the building and household level.

Hydropower took center stage domestically with the launch of construction of the Norin Hydropower Plant cascade in the Namangan region on April 5. The project comprises six plants totaling 228 MW and is expected to generate around 1.03 billion kWh annually, supply electricity to 430,000 households, and save nearly 277 million cubic meters of natural gas per year. Implemented entirely by Uzbekhydroenergo, the cascade is notable for its high level of localization.

At the Samarkand International Climate Forum on April 8, Uzbekistan signed major renewable agreements, including a 1,000 MW wind power plant in Karakalpakstan with China’s SANY Renewables and a 500 MW solar power plant in the Jizzakh region with China Electrical Equipment International. The country also reiterated its goal to raise the share of renewables in electricity generation to 54 percent within the next five years, exceeding its Paris Agreement commitments.

Smaller-scale projects complemented these initiatives. On April 8, Uzbekistan also signed an agreement with Xinjiang Qianyuan Kunyu Construction Engineering for the construction of nine mini-hydropower plants on the Karadarya River in the Andijan region.

The spring period culminated on April 22, when ACWA Power launched full commercial operations of its 1 GW wind power portfolio, comprising the Bash and Dzhankeldy projects. Completed nearly two months ahead of schedule, the milestone significantly strengthened Uzbekistan’s renewable energy base and underscored the effectiveness of large-scale public–private partnerships.

May: grid- and project-planning intensifies; nuclear site steps forward; Karakalpakstan lands $660 million MoUs

In May, Uzbekistan’s agenda widened: renewables, hydropower, nuclear planning, and investment-linked energy projects in the regions all moved in parallel.

On May 8, Uzbekistan approved the site plan for the construction of its Small Modular Nuclear Power Plant (SMNPP), to be built with Rosatom. The plan designates the location in the Farish district of the Jizzakh region. The decision was taken at a joint meeting chaired by Presidential Advisor on Energy Security Alisher Sultanov, where participants reviewed progress under the contract with Atomstroyexport and emphasized adherence to timelines. The SMNPP project in earlier documentation is described as 330 MW total capacity, based on RITM-200N reactors (55 MW each in prior outlines).

On May 12, Uzbekistan and Slovenia agreed on cooperation involving small-scale micro hydropower plants alongside broader industrial cooperation (pharma, chemicals, infrastructure), pointing to Uzbekistan’s intention to diversify not only energy sources but also technology and equipment partnerships.

On May 23, discussions were held with Chinese energy companies at the Uzeltechsanoat Association on the development of a 500 MW solar plant in the Farish district (Jizzakh). The meeting focused heavily on localization—cable supply partnerships and use of domestically produced materials, showing Uzbekistan’s effort to pair investment inflows with industrial development inside the country.

On May 27, Karakalpakstan’s Council of Ministers and Bell Energy signed five MoUs worth $660 million. The package included energy-linked components such as energy production from waste, as well as projects spanning underground oil storage, bioethanol/aviation fuel bamboo plantations, and other initiatives. While not all items were pure electricity generation, the signing illustrated how regional diplomacy and investment outreach are increasingly channels into the energy transition and circular-economy agenda.

June: nuclear feasibility for large plant; run-of-river hydro advances; ACWA-backed wind commissioned; green growth narrative reinforced

June was heavy on both traditional "big energy" (nuclear) and green capacity.

On June 20, Rosatom and Uzbekistan’s Uzatom signed an agreement to explore the feasibility of a large-scale nuclear power plant, with the concept centered on two VVER-1000 reactor units, with an option to expand to four units in the future. The document positioned the large-plant feasibility work as complementary to Uzbekistan’s SMR trajectory, and followed earlier high-level discussions during 2024–2025.

Also around this period, Uzbekistan advanced hydropower. On June 20, a strategic renewable energy project involving three run-of-river SHPPs in Shahrisabz district of Kashkadarya region was described: Rabat (6 MW), Chappasu (8 MW), and Tamshush (10 MW) plus mini/micro generators of 1 MW, totaling 25 MW. Construction began in April on a limited basis with completion projected for September 2025. The plan includes a cascade along the Aksu River, pipelines, and a transmission line (35–110 kV) connecting to the Gissarak HPP substation.

On June 21, a major wind power project was inaugurated in the Ayakagitma desert area of the Bukhara region with significant support from ACWA Power Bash Wind. Valued at $650 million, the project was described as expected to generate around 1.8 billion kWh annually, reducing gas consumption by roughly 500 million cubic meters per year. The region’s industrial demand and the project’s scale underscored how renewables are being positioned not as a "supplement," but as a central pillar for new load.

On June 24, Uzbekistan’s leadership framed the sector’s trajectory: annual electricity generation rose from about 59 to 82 billion kWh, and the country attracted nearly $6 billion in foreign investment into green energy. The government highlighted plans to launch 12 solar and 4 wind plants plus 12 energy storage systems in 2025 (total investment over $5 billion) expected to generate around 9 billion kWh annually, while also starting construction on additional projects worth $7.2 billion. Energy efficiency was elevated as a parallel priority, including plans to deploy solar and storage at large pumping stations to reduce electricity consumption by 2 billion kWh annually (from 6.5 to 4.5 billion kWh in the pumping segment described).

July: a wave of regional projects-wind, hydro cascades, grids, thermal, storage; Korea partnership broadens

July saw a very dense pipeline of new energy announcements across multiple technologies and regions.

On July 6, Uzbekistan confirmed it would build a 20 MW wind power plant in Burchmulla (Bostanlyk district, Tashkent region) funded through grants (about $28 million). The plant is expected to generate 129.6 million kWh annually, saving 811,100 cubic meters of gas (or 3,150 tons of coal) per year.

On July 7, Uzbekistan launched construction of the Norin Cascade as the country’s largest hydropower project in Namangan region (six plants, 228 MW total). Officials stressed it as the first fully national hydropower project, with equipment produced domestically at the UzHydroPower plant, and commissioning of the first plant targeted around the Independence Day period. The cascade is expected to produce around 1.03 billion kWh annually and save 277 million cubic meters of gas.

Also on July 7, Uzbekgidroenergo commissioned five new micro-hydropower plants in Karakalpakstan under decree PQ-129 (March 28, 2025). The facilities—ranging from 15 kW to 50 kW units, were assigned to local neighborhoods, and revenues from electricity sales were earmarked for socio-economic development, reflecting the "community benefit" model being applied to micro generation.

On July 8, JSC National Electric Networks of Uzbekistan signed an EPC contract with China’s Shandong Electrical Engineering & Equipment Group to design, supply, and install two 220 kV substations—Zafar and Faiziobod—with GIS technology. The project’s focus was reliability, safety, and modern infrastructure standards.

On July 9, construction progressed at the Talimardjan Thermal Power Plant on two combined-cycle units with a total capacity of 1,065 MW. The units are expected to enable production of up to 8 billion kWh annually, supported by concessional financing from the ADB and aimed at strengthening supply for Samarkand and Bukhara regions and improving efficiency in pumping stations and key regional hubs.

Also on July 9, Uzbekistan talked to China's CATL, which is the leader in batteries and storage, about making ESS batteries in Uzbekistan, making batteries for electric cars, and recycling technologies. This shows that Uzbekistan sees storage as a chance for industrial growth and not just as a grid asset.

On July 21, a municipal solid waste thermal processing plant with electricity generation was launched as an investment project in the Samarkand region with Shanghai SUS Environment LLC. The project includes a 30-year guaranteed electricity sale right to Uzenergosotish JSC, with $150 million investment, processing 1,500 tons of waste per day, and generating 240 million kWh annually, with commissioning planned between 2025 and 2027.

On July 22, China’s Baibuting Group launched a major multi-source renewable energy project in Akhangaran district (Tashkent region), valued at $1.8 billion, planned in phases over three years. Phase 1 includes two solar units (240 MW each) plus storage, with later phases adding wind, more storage, hydro, and biomass. Total expected capacity is 2 GW upon completion.

On July 25, Uzbekistan signed three agreements with China Energy International Group, including a 500 MW wind farm in Peshkun district (Bukhara region) and consulting/EPC for a 100 MW storage system in Tashkent. These projects were framed as aligned with Uzbekistan’s low-carbon transition strategy.

On July 30, construction of the Charvak Wind Power Plant (20 MW) was officially launched in the Bostanlyk district, backed by $28 million grant assistance from China. The plant is expected to produce about 50 million kWh annually, save roughly 15 million cubic meters of gas, and prevent 22,000 tons of harmful emissions; completion is planned for 2026.

On July 31, construction progressed at Tashkent’s CHP-4 on a 100 MW gas-piston power station, expected to generate 876 million kWh and 784,000 Gcal annually and save around 15 million cubic meters of gas per year—demonstrating that Uzbekistan is still building flexible thermal capacity to balance renewables and meet peak load, even as it expands green generation.

August–September: Afghanistan power corridor deepens; IAEA cooperation; nuclear agreements; hydropower pipeline grows

On August 18, Uzbekistan and Afghanistan signed contracts for four major energy projects worth about $243 million, aimed at high-voltage transmission lines and substations enabling Afghanistan to import 800–1,000 MW of electricity from Uzbekistan. The package includes the 500 kV Surkhan–Dasht-e-Alwan line (1,000 MW), Argandi substation expansion (800 MVA), the 220 kV Kabul–Sheik Mesri line (800 MW), and the Sheik Mesri substation in Nangarhar (126 MVA). This reinforced Uzbekistan’s role as an exporter and regional system stabilizer.

In September, nuclear and hydropower tracks advanced together.

On September 16, Uzbekistan’s Energy Minister signed a roadmap with IAEA Director General Rafael Grossi to strengthen cooperation in peaceful nuclear energy use, including the application of nuclear technologies across sectors and the institutional framework for Uzbekistan’s first NPP. On the same day, Uzbekistan launched a 280 kW solar plant in Quyi Chirchiq district to supply clean electricity for a mahalla, emphasizing the continuation of socially oriented micro-renewables programs.

On September 26, at World Atomic Week in Moscow, two pivotal agreements were signed for Uzbekistan’s first nuclear power plant project, including terms for an "integrated" configuration combining small- and large-scale nuclear units (two VVER-1000 reactors and two RITM-200N reactors in the described configuration) and key terms for nuclear fuel supply.

On September 30, ACWA Power and L&T Construction signed an agreement appointing L&T as EPC contractor for Samarkand’s Sazagan-1 and Sazagan-2 projects, including 500 MW solar PV and 500 MW BESS elements, with attention to increasing local content via Uzbek enterprises.

October: US-linked energy package grows; SMR earthworks begin; Andijan hydro deal in China

In October, Uzbekistan paired energy-sector modernization with major external partnerships.

On October 1, Uzbekistan’s Energy Minister stated that Uzbekistan and the United States reached agreements to implement energy projects worth $3–4 billion, including Air Products-related initiatives (coal gasification, synthesis gas, ammonia/methanol, and eco-friendly aviation fuel), as well as cooperation with Schlumberger and Baker Hughes on drilling technologies and the planned modernization of compressor stations.

On October 10, earthworks began at the construction site of Uzbekistan’s first SMR in the Jizzakh region based on RITM-200N, with "first concrete" for Unit 1 expected in spring 2026 in the described timeline. The SMR project is framed as a cornerstone for longer-term power security and industrial capability building.

On October 27, Andijan region’s delegation reached an agreement in China with Sichuan Power Transmission & Transformation Construction to launch a $500 million investment project, including the construction of a 200 MW hydropower plant and modernization of existing substations, another example of renewables coupled tightly with grid upgrades.

November: storage goes big with Masdar; China Datang expands solar+storage; PPP risk guarantees; regional power coordination

In November, Uzbekistan’s agenda shifted strongly toward storage, PPP mechanisms, and institutional tools to scale private capital.

On November 11, Masdar signed a Battery Storage Service Agreement with Uzenergosotish to develop the Zarafshan BESS, positioned as Uzbekistan’s standalone storage project and the first phase of a national BESS program. Phase 1 includes 300 MW / 600 MWh, with a second 300 MW / 600 MWh phase planned. The project is expected to be operational by Q3 2028 and was framed as supporting Uzbekistan’s renewables and net-zero pathway and long-term grid reliability.

On November 12, China Datang Corporation planned a solar PV plant and storage system in the Tashkent region, with an already commissioned 263 MW solar plant in the Bukin district expected to generate 575 million kWh annually and save around 154 million cubic meters of gas. China Datang also planned to establish a Joint Research Center for Innovative Energy Technologies at the Bukin solar plant.

Wind power development continued on November 14, when Uzbekistan launched the 20-MW Charvak Wind Power Plant project in the Bostanlyk district of the Tashkent region. Scheduled for commissioning by 2026, the plant is expected to generate around 50 million kWh annually, reduce gas consumption by 15 million cubic meters, and prevent up to 22,000 tons of CO₂ emissions each year, supplying electricity to approximately 20,000 households.

On November 18, Uzbekistan reaffirmed its commitment to continue electricity supplies to Afghanistan in 2026, as the parties reviewed progress on high-voltage transmission lines and substations. On the same day, Uzbekistan, the Asian Development Bank (ADB), and ACWA Power signed agreements introducing a partial risk guarantee mechanism for major PPP projects, including:

a 200-MW wind power plant with 100 MW of energy storage in Karakalpakstan;

two 500-MW solar PV projects with 334 MW of storage each in the Samarkand region (Sazagan Solar 1 and 2).

Decentralized hydropower also advanced. On November 19, Uzbekistan launched a 2-MW micro-hydropower project in the Namangan region in cooperation with China’s Zenith Hydro Electric, with an investment of $5 million. In parallel, Uzbekhydroenergo commissioned five new micro-hydropower plants in Karakalpakstan, in line with Presidential Decree No. PQ-129, aimed at expanding small-scale hydropower nationwide.

The month also underscored the continued role of flexible thermal generation. On November 21, Uzbekistan announced plans to commission a 100-MW gas-piston power plant at the Tashkent Thermal Center by year-end, highlighting the balancing role of thermal capacity alongside the rapid expansion of renewables.

Regional coordination remained a key theme. On November 24, Kazakhstan and Uzbekistan reaffirmed their readiness to supply electricity to Kyrgyzstan during the autumn–winter period, enabling water accumulation in the Toktogul Reservoir for release during the vegetation season—linking electricity balancing with transboundary water management across Central Asia.

December: year-end culmination - 42 facilities launched, 21 new projects started, $11 billion package

The year’s central "capstone" event came on December 5, when President Mirziyoyev attended the ceremony "Powering the Future: Sustainable Energy for a New Uzbekistan," marking the inauguration of 42 new energy facilities and the start of construction for 21 more projects, collectively valued at nearly $11 billion.

The launched package included:

16 solar, wind, thermal, and hydropower plants totaling 3,500 MW, expected to generate 15 billion kWh annually;

10 energy-storage systems totaling 1,245 MW;

11 major substations and 420 km of high-voltage transmission lines to ensure stability;

Further push for household/social solar and small/micro hydropower.

According to official estimates, the projects are expected to reduce natural gas consumption by nearly 7 billion cubic meters and prevent about 11 million tons of harmful emissions, underscoring the environmental and efficiency impact of the year-end package.

Alongside generation, December highlighted a growing shift toward private participation in electricity distribution. Uzbekistan pointed to its agreement with Turkish company Aksa Elektrik on the transfer of regional electricity networks in Samarkand to private management. The initiative aims to modernize grids, reduce technical losses by up to twofold, and generate sustainable operational savings.

Energy efficiency in the water sector emerged as another priority. On December 15, Uzbekistan announced a phased replacement of 276 pumping units in Karakalpakstan, where more than half of the existing equipment dates back to before 1979 and consumes two to three times more electricity than modern systems. Pilot replacements have already demonstrated up to 50 percent reductions in electricity consumption, with the broader program expected to save around 25 billion soums annually and achieve a payback period of roughly 14 months.

Industrial decarbonization projects also advanced. On December 15, Uzbekistan and China signed an investment agreement for a 60-MW green energy project linked to Namangan Cement Company, with total investments of $43 million. The project is expected to supply up to 80 percent of the facility’s electricity demand from renewable sources and is scheduled for commissioning in September 2026, supporting the greening of energy-intensive industries.

A major financing breakthrough was announced on December 13, when UNG Overseas (an international subsidiary of Uzbekneftegaz) and US-based Cargill reached an agreement on long-term funding of up to $3 billion, with an additional $5 billion potentially available. The financing framework is intended to support energy security, infrastructure modernization, renewable deployment, and improved efficiency in energy and water resource management.

Nuclear energy development reached a tangible construction phase. On December 2, Uzbekistan confirmed the launch of construction works at an integrated nuclear power plant site in the Jizzakh region, comprising two large-capacity VVER-1000 reactors and two small-capacity RITM-200N reactors. Excavation works for reactor buildings are underway, alongside preparations for construction infrastructure and workforce accommodation. Officials also presented plans to localize construction materials, expand nuclear education programs, and develop a dedicated mono-city for plant employees. According to government estimates, the combined nuclear facility is expected to generate over 15 billion kWh annually by 2035.

Summary: 2025 as a turning point toward a storage-backed green system

In 2025, Uzbekistan made major progress in transforming its energy sector, moving from planning to large-scale implementation of new projects.

The country rapidly expanded solar, wind, hydropower, and energy storage, while continuing to invest in grids and flexible thermal generation to ensure reliability. Energy storage moved from pilot concepts to real projects, becoming an important tool for integrating renewables and stabilizing the power system.

Hydropower advanced through both large national projects and small local plants, while nuclear energy moved closer to reality with site approvals, feasibility studies, and the start of construction works. At the same time, Uzbekistan modernized transmission networks, pumping stations, and distribution systems to reduce losses and improve efficiency.

Uzbekistan also strengthened its role in regional power cooperation, supplying electricity to neighboring countries and coordinating energy and water management across Central Asia.

Overall, 2025 marked a clear shift toward a more diversified, reliable, and greener energy system, supporting economic growth and positioning Uzbekistan to increase the share of renewables to over 50 % by 2030.

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