BAKU, Azerbaijan, Aug. 14
By Ilkin Seyfaddini - Trend:
President Mirziyoyev has ambitious plans for Uzbekistan’s energy sector given that growth of both the population and economy will increase domestic electricity consumption over the next decade, Russia, Caucasus, and Central Asia Analyst at London-based Prism Political Risk Management consultancy Rebeka Foley told Trend in an interview.
“Since 2016, President Shavkat Mirziyoyev has pursued extensive political and economic reforms in Uzbekistan. He has sought to improve the country’s business climate and attract foreign investment while also rekindling Uzbekistan’s diplomatic ties with other Central Asian countries,” stressed Foley.
She said that the COVID-19 crisis has slowed momentum in the president’s reform agenda, however, leading to greater focus on economic recovery and stimulus.
The analyst added that the president aims to meet rising electricity demand through greater efficiency of energy infrastructure as well as the modernization of existing plants and renewable power generation with the help of foreign investment.
“Uzbekistan’s electricity demand could double by 2030, and the widening supply deficit between domestic consumption and production will continue to be an area of focus for investments through partnership with private companies," Foley noted.
"The president is keen to increase renewable energy production to optimize energy consumption, with deals signed this year to build wind and solar farms through foreign investment,” she added.
The government of Uzbekistan approved the concept of providing the country with electricity for 2020-2030. The strategic goal of the document is to supply electricity to the population and economy of Uzbekistan at competitive prices, and develop a balanced energy sector, covering the best international practices and current trends in the global power industry.
It is planned to increase electricity production from 5,900 MW to 29,200 MW by 2030. The share of thermal power plants using natural gas is planned to be increased to 45 percent (13,400 MW); thermal power plants using coal to 5.9 percent (1,700 MW); hydropower plants to 13.1 percent (3,800 MW); the share of wind power plants to 10.4 percent (3,000 MW); photovoltaic power plants to 17.3 percent (5,000 MW) and nuclear power plants to 8.3 percent (2,400 MW).
In addition, it is planned to reduce the consumption of natural gas from 16.5 billion cubic meters to 12.1 billion cubic meters, while the annual volume of coal combustion will increase from 4.1 million tons to 8.5 million tons.
It is also planned to reduce losses in electricity transmission to 2.35 percent and distribution losses to 6.5 percent (1.85 times less than in 2019).
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