BAKU, Azerbaijan, November 25. Trend News Agency presents an overview of the most important events in Uzbekistan’s renewable energy sector from July through September of 2023.
Construction of new power plants
On July 1, Uzbekneftegaz JSC, a state-owned holding company of Uzbekistan's oil and gas industry, has deployed solar PV farms at its Mubarek gas processing plant. As the company reported, the capacity of these solar PVs has totaled 600 kW, while the capacity of solar water heating systems amounted to 1,400 liters. Aimed at saving fuel and energy resources, these solar PVs will generate 1.14 million kWh of electricity per year.
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On July 5, Uzbekistan has commissioned a solar PV power station with a capacity of 1 MW at the Turakurgan Thermal Power Plant. Turakurgan Combined Cycle Power Plant is a 900MW gas fired power project located in the Namangan region of the country. As a result of its operation, an additional 1.9 million kWh of electricity will be generated annually. This will lead to a saving of 500,000 cubic meters of natural gas per year.
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On July 8, Minister of Energy of Uzbekistan Jurabek Mirzamakhmudov revealed that by the end of 2023, 1.8 GW low-capacity renewable energy plants will be put in operation in Uzbekistan.
"By installing renewable energy plants, converting consumers to alternative energy and introducing energy-saving technologies, it will be possible to produce an additional 5 billion kWh of electricity in 2023," he said. According to the minister, as a result, it will also become available to save 4,8 billion metric cubic feet of natural gas per year.
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On July 14, a solar photovoltaic station with a capacity of 1.2 MW has been successfully commissioned at Mubarek thermal power plant (TPP) in Uzbekistan. The commissioning of this solar power station will contribute to an additional 2.7 million kWh of electricity annually. This sustainable energy generation will lead to significant savings, eliminating the consumption of 500,000 cubic meters of natural gas per year.
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On July 17, a new solar photovoltaic station has been commissioned at the Takhiatash Thermal Power Plant in Uzbekistan. The new solar station, built by Uzbekenergotamir, covers an area of 1 hectare and is equipped with over 1,500 monocrystalline solar panels, generating a capacity of 1 MW. Once in full operation, the station is expected to produce 1.8 million kilowatt-hours of electricity annually, contributing to a significant reduction in the consumption of natural gas by saving 400,000 cubic meters per year.
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On August 23, two more solar power plants with a capacity of 150 kW each have been launched at Uzbekistan's Bukhara Oil Refinery. Thus, the number of solar power plants at the Bukhara Oil Refinery has reached 10 units.
Cooperation with international partners
On July 6, Uzbekistan revealed its plans to build two more photovoltaic power stations in the Samarkand region in collaboration with Saudi Arabian ACWA Power Company. In this regard, Uzbekistan's President Shavkat Mirziyoyev signed two resolutions regarding the implementation of investment projects. These projects entail the construction of two photovoltaic power stations, each with a capacity of 500 MW, along with energy storage systems of 334 MW capacity and substations to facilitate their operation.
The two solar power stations are named Sazagan Solar 1 and Sazagan Solar 2, with project investments of $758 million and $1.04 billion, respectively. The resolutions stipulate that the National Electric Networks of Uzbekistan have undertaken a guaranteed purchase of the electricity generated by these solar power stations for a period of 25 years.
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On July 7, Uzbekneftegaz JSC and French TotalEnergies have agreed on the implementation of new projects for developing Uzbek energy sector. As Uzbekneftegaz announced, the companies consider inking a Non-Disclosure Agreement (NDA) and a Memorandum of Understanding (MOU).
TotalEnergies expressed readiness to collaborate with Uzbekneftegaz in the implementation of new projects in the field of green energy. Operating in over 130 countries, the company also expressed will to open a representative office in the city of Tashkent, which will become its representation throughout Central Asia.
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On July 10, Saudi Arabia's ACWA Power revealed its plans to construct green hydrogen plant with the total capacity of 3,000 tons per year in Uzbekistan. The relevant agreement was reached during the meeting between Minister of Investments, Industry, and Trade of Uzbekistan Laziz Kudratov and Chairman of ACWA Power Mohammad Abunayyan. The construction work is planned to commence in the autumn of the current year.
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On July 10, Meyer Burger, a Swiss solar cells and modules manufacturing company, has expressed its intention to establish solar panel production in Uzbekistan. The representatives of the company have visited the Chirchik Chemical-Industrial Technopark in Uzbekistan's Tashkent, where they were acquainted with the park’s objectives, investment opportunities, and resident benefits.
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On July 20, President of Uzbekistan Shavkat Mirziyoyev revealed that green hydrogen project of Saudi Arabia’s ACWA Power in Uzbekistan is expected to be launched in August. He made the remark during the summit of the Gulf Cooperation Council (GCC) and Central Asian countries in Jeddah on July 19.
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On September 5, China introduced an automation system for controlling generators in Uzbekistan’s hydroelectric power plants. Total cost of the project exceeded $18.5 million, $4.1 million of which was provided by Uzbekhydroenergo JSC, and $14.4 million was a Chinese loan. Repairs at hydroelectric power plants of the Chirchik-Bozsu cascade allowed for significant increase in their capacities and generation of electricity.
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On September 14, Chinese PowerChina International Group has started building a $330 million-worth photovoltaic plant in New Andijan region of Uzbekistan. The photovoltaic (PV) plant with a capacity of 400 MW is being built on 700 hectares of land of the New Andijan massif on land plots not used for growing agricultural products. The plant, when finished and running, is expected to cover a third of the region's electricity needs.
The launch of the first stage of the project with a capacity of 100 MW is scheduled for April 1 of 2024, and the station will be fully operational in November-December of 2024. After the plant is put into operation, 700 million kWh of electricity will be produced per year, which will save 212 million cubic meters of natural gas and prevent the release of 294,000 tons of harmful greenhouse gases into the atmosphere.
Investments in green energy infrastructure
On July 6, The National Bank of Uzbekistan and Standard Chartered, a British multinational bank, have concluded an agreement to attract a credit line in the amount of $100 million directed towards financing investment projects in small and medium-sized businesses in alternative energy.
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On July 8, The World Bank has provided a grant to Uzbekistan for reducing greenhouse gas (GHG) emissions. The recent grant will aid the Government of Uzbekistan in , promoting efficient energy resource utilization, and accessing international carbon markets.
The project, called Innovative Carbon Resource Application for Energy Transition (iCRAFT) in Uzbekistan, marks the World Bank's first "policy crediting" initiative.
With a grant of $46.25 million, iCRAFT aims to create incentives for energy subsidy reforms that will lead to reduced energy consumption and GHG emissions. The program will assign value and credit for implementing and enforcing policies that foster emission reductions in the energy sector. Over the duration of iCRAFT until 2028, the grant will be disbursed annually to reward energy subsidy reforms that achieve specific emissions reductions. It is projected that Uzbekistan could reduce approximately 60 million metric tons of CO2 throughout iCRAFT's life cycle, with the project providing payment for around 2-2.5 million metric tons of CO2. The remaining emissions reductions can be sold in international carbon markets using the systems and processes developed and tested under the project.
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On July 8, 34 modern power plants with a total capacity of more than 19.5 GW financed by foreign investors will be constructed in Uzbekistan, Jurabek Mirzamakhmudov, Minister of Energy of Uzbekistan, said during the "New Uzbekistan: Progress, Innovation and Education" conference held in Tashkent.
According to the minister, since 2019, Uzbekistan has signed 34 agreements with foreign investors for the construction of heat, solar and wind power plants worth $16.6 billion.
"In addition, 278 medium and small hydropower plants will be built and upgraded by 2030. As a result, the capacity of the hydroelectric power stations in the country will double," he said.
Mirzamakhmudov also added that, by 2030, the total capacity of solar and wind power will be increased to 15 GW.
"Its 10 GW of solar, and 5 GW of wind power, accounting for almost 50 percent of total electricity production capacity in Uzbekistan," the minister noted.
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On July 11, the UAE's Masdar revealed its plans of implementing large-scale hydroelectric projects in Uzbekistan to increase the investment portfolio up to $10 billion. The issue was discussed at the meeting between Jurabek Mirzamakhmudov, Minister of Energy of Uzbekistan, and Chief Operating Officer at Masdar Abdulaziz Alobaidli
During the meeting, it was emphasized that the construction of solar photovoltaic stations with a total capacity of 440 MW in the Samarkand and Jizzakh regions and 457 MW in the Surkhandarya region, as well as a 500 MW wind power plant in the Navoi region, should be accelerated as part of the implementation of existing projects.
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On July 25, UAE's AMEA Power energy company revealed its plans to invest in the construction of wind and solar power plants in Uzbekistan. During their meeting, Uzbekistan and UAE reached an agreement to collaboratively implement energy projects in the Bukhara and Navoi regions, as well as in the Republic of Karakalpakstan, an autonomous republic of Uzbekistan.
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On September 21, a Japanese Hanwa trading company has started the implementation of projects for the introduction of alternative energy in Uzbekistan with the help of $200,000 worth of subsidies from the Ministry of Economy, Trade, and Industry of Japan.
The Japanese company plans to implement a pilot project in two medical institutions in the Yakkabag district of Uzbekistan’s Kashkadarya region, installing solar photovoltaic panels and introducing a biofuel heating system.
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On September 26, General Electric Global Parts and Products, an international subsidiary of the General Electric multinational corporation, invested $60 million in the maintenance of Uzbekistan’s power plants, the supply of new units, and the restoration of used spare parts.
General Electric Global Parts and Products also agreed to organize professional development for young employees of Uzbekenergotamir. They will be engaged in repair and commissioning work with the assistance of US specialists in order to study modern power plant units.
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On September 26, Chinese Shaanxi Xiangsheng Industrial Group revealed its intentions to invest $300 million in the construction of a 500 MW solar power plant in Uzbekistan’s Fergana region. Shaanxi Xiangsheng Industrial Group has already invested more than $200 million in the development of the Fergana Region in recent years.
