Uzbekistan is on the brink of a transformative journey in its power sector, as President Shavkat Mirziyoyev recently convened a meeting to unveil a comprehensive development strategy for the years 2025 to 2035. This ambitious plan emerges against a backdrop of significant growth in electricity production, which has surged by 38% over the past eight years, culminating in an impressive output of 81.5 billion kilowatt-hours. The private sector has played a pivotal role in this expansion, contributing 11.2 gigawatts of new capacity, which now constitutes 24% of the total electricity generation. Renewable energy sources, too, are making strides, accounting for 16% of the mix.
As household electricity consumption has doubled since 2016, surpassing 21 billion kilowatt-hours, the urgency to address rising demand has never been more pronounced. With projections indicating that Uzbekistan’s population will reach 41 million by 2030 and the economy is expected to grow 1.5 times, electricity demand is set to skyrocket to 117 billion kilowatt-hours by that year. By 2035, estimates suggest that demand will hit 135 billion kilowatt-hours—an astonishing 1.7 times the current level. To meet this burgeoning need, the government is implementing a robust plan that includes the construction of new power plants and energy storage facilities, alongside the expansion of infrastructure that will see the addition of 7,000 kilometers of new power lines. The introduction of digital management systems aims to facilitate efficient distribution, allowing for real-time adjustments to balance supply across regions facing shortages.
Central to this strategy is a renewed focus on renewable energy. Uzbekistan boasts significant potential in solar, wind, and hydro resources, and the government has set an ambitious target for half of the country’s electricity to come from these sources by 2030. This includes plans for 3,000 small hydropower plants with a combined capacity of 164 megawatts and an additional 750 megawatts from solar and wind power. The previous goal of increasing renewables’ share to 40% of total energy consumption has now been elevated to 50%. Alongside this shift, Uzbekistan is striving to enhance industrial energy efficiency, targeting a reduction of energy waste by 10-15% across industries and cutting electricity losses from 14% to between 8% and 9% by 2030.
The landscape for foreign investment is also evolving. With international investors already engaged in energy projects worth $26 billion, local companies are presented with opportunities to supply the necessary equipment and materials. The government has been tasked with formulating a long-term electricity strategy that prioritizes energy security, efficiency improvements, and the cultivation of skilled professionals to navigate this transition toward a more sustainable power sector.
As Uzbekistan embarks on this bold trajectory, the implications for the energy landscape are profound. The focus on renewable energy not only addresses immediate demands but also positions the nation as a potential leader in sustainable practices in Central Asia. The integration of advanced technologies and infrastructure improvements will likely enhance the resilience of the power sector, ensuring that it can adapt to the challenges of a rapidly changing environment. The commitment to reducing energy waste and improving efficiency could set a new standard for industrial practices, fostering a culture of sustainability that resonates beyond national borders. The unfolding developments in Uzbekistan’s power sector will undoubtedly serve as a bellwether for broader trends in energy transition, sustainability, and economic growth in the region.
