BAKU, Azerbaijan, December 26. Trend News Agency presents an overview of the most important events of Uzbekistan’s renewable energy sector in 2023.
Deployment of new power plants
Solar energy
On July 1, Uzbekneftegaz JSC, a state-owned holding company of Uzbekistan's oil and gas industry, 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 commissioned a solar PV power station with a capacity of one MW at the Turakurgan Thermal Power Plant. Turakurgan Combined Cycle Power Plant is a 900 MW 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 14, a solar photovoltaic station with a capacity of 1.2 MW was successfully commissioned at the 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 was commissioned at the Takhiatash Thermal Power Plant in Uzbekistan. The new solar station, built by Uzbekenergotamir, covers an area of one hectare and is equipped with over 1,500 monocrystalline solar panels, generating a capacity of one 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 were launched at Uzbekistan's Bukhara Oil Refinery. Thus, the number of solar power plants at the Bukhara Oil Refinery has reached 10 units.
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In November, Uzbekistan started the construction of a new solar photovoltaic power plant with a capacity of one MW in the Fergana region.
The solar station, which covers an area of 6,300 square meters and is located on both existing and unoccupied parts of the firm, is now undergoing metal structure installation to accommodate solar panels.
According to Uzbekistan's Energy Ministry, once completed and operational, the station will generate 1.8 million kWh of electricity and save 400,000 cubic meters of natural gas every year.
Wind energy
In November, it was announced that Uzbekistan plans to launch 10 wind power plants with a total capacity of 4,400 MW by the end of 2027.
As per data provided by Uzbekistan’s Ministry of Energy, the list of the new renewable energy stations for the year 2025 looks as follows:
A wind farm with a capacity of 500 MW will be launched in the Tomdy district of the country’s Navoi region. The first phase of the project is planned to be launched by the end of 2023.
Two wind power plants with a total capacity of 1,000 MW will be launched in Peshkun and Gijduvan districts of the Bukhara region.
A 100-MW wind farm will start operating in the Karaozak district of the Republic of Karakalpakstan.
Additionally, in 2026, Uzbekistan will launch a wind farm with a capacity of 600 MW in the Gijduvan district of the Bukhara region.
In 2027, three wind power plants with a capacity of 500 MW each will be launched in the Kungirot district of the Republic of Karakalpakstan.
Furthermore, in 2027, a 500 MW wind farm will be launched in the Bulungur district of the Samarkand region.
Hydropower
In November 2023, it was revealed that Uzbekistan plans to increase the total capacity of hydroelectric power plants to 6,000 MW by 2030 by attracting foreign investment and the private sector.
As per initial estimates, the hydropower potential of Uzbekistan amounts to 8,000 MW, but now only 2,200 MW are utilized.
Mirziyoyev stated that to tackle the issue, a 20-year lease of land has been introduced by entrepreneurs wishing to organize small and micro hydropower plants, as well as a system of guaranteed purchase of electricity produced by them by the state.
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Moreover, in November, Uzbekistan disclosed its plans to launch 20 hydropower stations in Uzbekistan by the end of 2023. It was also noted that 38 hydropower plants are planned to be launched in 2024.
In addition, Uzbekistan’s Uzbekhydroenergo energy company plans to commission seven large hydroelectric power plants with a total capacity of 197 MW. Due to this, electricity generation will reach 7 billion kWh.
According to the instructions of President Mirziyoyev, specialists have studied additional reserves in the amount of 1,000 MW. For example, by building cascades on the Naryn River, it is possible to reach a capacity of 230 MW and generate electricity sufficient for the needs of the 450,000 residents of Namangan.
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November 2023 also saw the commencement of the construction of a new hydroelectric power plant in the Ulugnor district of the Andijan region.
Valued at $1 million, this project holds promise for the community as it aims to address the region's energy needs.
Once completed, the new plant is anticipated to cater to the electricity requirements of over 500 households.
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On November 16, Uzbekistan started the construction of the Zarchob-3 hydroelectric power station in the Saryasiysky district of the Surkhandarya region.
As per data provided by Uzbekhydroenergy JSC, the plant will have a capacity of 16 megawatts and will be able to produce 70 million kWh of electricity per year.
Meanwhile, Uzbekistan’s hydropower potential is estimated at 8,000 megawatts, with 2,200 megawatts being put into operation as of November 2023.
By attracting foreign investment and the private sector, it is planned to increase the total capacity to 6,000 megawatts by 2030.
The plan for expanding the green energy infrastructure in Uzbekistan in 2023 involves the construction of 20 small and micro hydropower plants, with projections for 38 more in 2024.
Additionally, Uzbekhydroenergo JSC aims to inaugurate seven large hydroelectric power plants, collectively boasting a capacity of 197 megawatts. This initiative is anticipated to elevate electricity generation to 7 billion kWh.
Cooperation with international partners
In May, the EBRD and ACWA Power signed a credit agreement for the construction of a 100 MW wind power plant in Karakalpakstan's Nukus, which is set to become the first initiative under the EBRD's program aimed at supporting Uzbekistan in the establishment of wind energy capacities with a cumulative production potential of 2,000 MW. The credit agreement outlines that the bank will provide a loan of $19 million to ACWA Power Wind Karatau.
The total cost of the project amounted to $117 million. It is expected to achieve commercial operation in February 2025.
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Moreover, in May 2023, it was announced that Saudi Arabia's ACWA Power had been announced as the preliminary winner in the tender for the construction and operation of the 300 MW solar PV plant in Kashkadarya's Guzar. This project supported by the Asian Development Bank (ADB) under the "300 MW Solar Photovoltaic Power Plant Development and Consulting Services Program" (ADB Phase 2), attracted proposals from two international companies.
The financial proposal opening revealed the following outcomes:
"Abu Dhabi Future Energy Company PJSC-Masdar" (UAE) offered 3.0000 US cents per kWh for solar electricity generated by the plant and 6.33 US dollars per MWh for the availability of the battery system.
ACWA POWER-Saudi Listed Stock Company (Saudi Arabia) proposed 3.0518 US cents per kWh for solar electricity generated and 24.425 US dollars per MWh for the availability of the battery system.
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On July 6, Uzbekistan revealed its plans to build two more photovoltaic power stations in the Samarkand region in collaboration with the 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 one 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 agreed on the implementation of new projects for developing the 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 its desire 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 a green hydrogen plant with a 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 cell and module manufacturing company, 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 the 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. The 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 in the Chirchik-Bozsu cascade allowed for a significant increase in their capacities and generation of electricity.
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On September 14, Chinese PowerChina International Group started building a $330 million-worth photovoltaic plant in the New Andijan region of Uzbekistan. The photovoltaic (PV) plant with a capacity of 400 MW is being built on 700 hectares of land in 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, 2024, and the station will be fully operational in November and 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.
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In October, Uzbekistan’s Uzbekhydroenergo JSC energy company and China Southern Power Grid, specializing in the construction and operation of power grids, signed an agreement on joint development of the hydroelectric power plant construction project.
The hydroelectric power plant will be built in the Bostanlyk district of Uzbekistan’s Tashkent region. The cost of the project is estimated at $1 billion.
As a result, annual electricity generation will increase by 3 billion kWh, which is enough for uninterrupted power supply to 1.6 million people.
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On November 6, Chinese Huawei, a global supplier of ICT infrastructure, and Uzbek Yashil Energiya Energy Company established a dispatch center in Uzbekistan to monitor solar stations.
The new online facility is aimed at controlling the operating mode of the equipment, timely troubleshooting, and collecting analytical data on Uzbekistan’s solar stations’ activities. The control center meticulously maintains comprehensive records of energy production from each individual station and compiles data pertaining to every facility across Uzbekistan.
Solar stations have already been installed on the buildings of 333 social facilities and government agencies. Their total capacity amounts to 20 MW; at the moment, more than 4.5 million kWh of energy have already been generated.
Earlier this year, a document was signed between Huawei and Yashil Energiya for the supply of inverters for the implementation of renewable energy projects in Uzbekistan.
Investments in green energy infrastructure
In the beginning of 2023, UAE's Masdar allocated some $396.4 million for the construction of solar power plants in Sherabad, Samarkand, and Jizzakh regions with a total capacity of 900 MW.
Additionally, the European Investment Bank (EIB) and Asian Infrastructure Investment Bank (AIIB) participated in the project, providing $83.6 million each, while the European Bank for Reconstruction and Development (EBRD) invested some $205 million.
Masdar achieved the financial completion of three solar projects, making them the largest solar energy development program in Central Asia. Once fully operational, these projects will generate enough electricity to feed more than a million homes, displacing nearly a million tons of carbon dioxide annually.
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Moreover, in May this year, the Ministry of Investment, Industry, and Foreign Trade, the Ministry of Energy, and Masdar announced the joint development of 2,150 MW and 500 MW solar PV and wind power plant projects worth $2.6 billion.
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In April, ACWA Power and ADB signed a loan agreement worth $174 million for the construction of wind power plants of 500 MW each in Uzbekistan’s Bukhara region.
It is expected that each plant will consist of 79 wind turbines, and both of them will generate more than 3,200 GWh of electricity, thus reducing about 2 million tons of carbon dioxide equivalent a year.
Owing to the sum of money allocated by ADB and its fund, it will also be possible to install 282.5 kilometers of a 500-kilovolt, single-circuit overhead transmission line to connect to the power grid.
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On July 6, the National Bank of Uzbekistan and Standard Chartered, a British multinational bank, 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 provided a grant to Uzbekistan to reduce 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.
"It's 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 to implement large-scale hydroelectric projects in Uzbekistan to increase its investment portfolio 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 the 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 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.
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On October 9, Saudi Arabia’s ACWA Power, specializing in power generation, renewable energy, and desalinated water, will invest approximately $1.6 billion for the construction of a wind power plant, a storage station for electricity, and power transmission lines in the Kungrad district of Uzbekistan’s Karakalpakstan region.
The first initiative involves the establishment of Kungrad Wind 1, a joint venture focused on constructing a 500 MW wind farm.
The second endeavor, Kungrad Wind 2, will see the creation of a joint venture dedicated to the storage and accumulation of electricity, boasting a capacity of 100 MW.
Lastly, the project presupposes the development of Kungrad Wind 3, a joint venture dedicated to constructing an overhead power transmission network in the Kungrad district of Uzbekistan’s Karakalpakstan region.
The Saudi Arabian company will attract direct investments in the amount of $1 billion for the Kungrad Wind 1 project and $667 million for the implementation of each of the other two projects. In turn, Uzbekistan guarantees the purchase of electricity produced by the stations.
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On October 13, Uzbekistan and the World Bank (WB) signed an agreement on the provision of financing in the amount of $46.2 million to Uzbekistan to reform the country’s energy sector.
The funds are said to be used to implement the project Innovative Carbon Financing for the Transformation of the Energy Sector of Uzbekistan (iCraft), aimed at producing clean energy, improving energy efficiency, and reforming energy subsidies.
Being the first project to support reforms in the country’s energy sector, it will help Uzbekistan fulfill its international obligations in the field of climate change and effectively use energy resources.
As part of this initiative, it is planned to purchase emissions from the country until 2027, the reduction of which will be possible thanks to more efficient use of energy resources and the reform of energy subsidies.
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On October 20, China allocated a grant in the amount of $28 million for the construction of the Charvak wind farm in the Bostanlyk district of Uzbekistan’s Tashkent region.
Within the framework of this project, Uzbekhydroenergo JSC Energy Company plans to build four wind power plants with a capacity of 5 MW each with the implementation of new generation technologies at the expense of a Chinese grant.
The project is said to produce an average of 43 million kWh of electricity annually and provide an opportunity to create 20 new jobs.
Furthermore, over the course of this wind farm's operation for a minimum of two decades, it is estimated that approximately 580,000 tons of coal, 1.84 million barrels of oil, or 12 million cubic meters of natural gas will be conserved.
Meanwhile, Uzbekistan has been actively working on the development of its renewable energy sector. The country has recognized the importance of diversifying its energy sources and reducing its dependence on fossil fuels. Thus, the country plans to attract $7 billion of private investment to create an additional 9 GW of generating capacity. The total volume of necessary investments in the electric power industry is estimated at $52 billion.
In early 2023, the President of Uzbekistan adopted a resolution titled "On measures to accelerate the introduction of renewable energy sources and energy-saving technologies in 2023.".
According to the document, Uzbekistan will put into operation large solar and wind power plants with a capacity of 2,100 MW, solar panels installed on buildings and structures of social facilities and economic entities, households with a capacity of 1,200 MW, and small solar power plants installed by entrepreneurs with a capacity of 550 MW.
The plants and panels will produce an additional 5 billion kWh of electric energy, thus saving 4.8 bcm of natural gas. The financing of this project amounted to about $15.4 billion. The Uzbek government plans to allocate $100 million from the budget, while the rest of the costs will be covered by: funds from investors within the framework of public-private partnership projects: $13.4 billion; loans from commercial banks: $1.1 billion; funds from enterprises: $610 million; and funds from foreign financial organizations: $150 million.
