BAKU, Azerbaijan, June 28
By Klavdiya Romakayeva - Trend:
The World Bank (WB) will provide Uzbekistan with a concessional loan for the transformation of the electricity sector, Trend reports with reference to the World Bank.
The Board of Directors of the WB approved the project on the transformation of the electricity sector and sustainable electricity transmission, aimed at increasing the efficiency of the National Electricity Grids of Uzbekistan JSC.
The WB is providing a loan of $380 million, and the Green Climate Fund (GCF) - a loan of $43 million. The financing is provided at very low interest rates and with a maximum maturity of up to 40 years. The GCF will also provide a $4 million grant for selected project activities.
According to experts, the demand for electricity in Uzbekistan will grow from 61 billion kWh in 2018 to over 100 billion kWh by 2030. Today, the country has over 250,000 kilometers of transmission lines and distribution grids. Most of them were built during the Soviet period and have long depleted their operational life.
The WB noted that the project will help modernize outdated energy infrastructure by financing priority investments for the National Electricity Grids of Uzbekistan. In particular, the reconstruction, modernization, and expansion of 22 outdated high-voltage substations, as well as the construction of a new substation with a capacity of 500 kilowatts and power lines will be implemented in 11 regions of the country.
Also, the project will introduce modern technologies and solutions for monitoring, control, and operation of the power transmission system, including the creation of a new software and hardware complex for dispatch control and data acquisition (SCADA), as well as an electricity management system (EMS) for the central and regional dispatch centers of the National Electric Grids of Uzbekistan. This will replace obsolete systems that have been in operation since Soviet times.
The project also envisions increasing the capacity of the electricity grid to integrate renewable energy from the private sector. In particular, it will help integrate 1,500 megawatts of renewable energy into the grid.
“These measures will lead to a reduction in carbon dioxide emissions into the atmosphere, as well as help attract additional private investment in the renewable energy sector,” the WB stressed.
In addition, the project will contribute to the development of regional energy trade in Central Asia through the reconstruction and expansion of infrastructure connecting Uzbekistan with the electricity systems of Afghanistan, Kazakhstan and Tajikistan.
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