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Uzbekhydroenergo JSC’s program to support decarbonisation in Uzbekistan – Fitch Ratings

Uzbekistan Materials 2 December 2021 11:02 (UTC +04:00)
Uzbekhydroenergo JSC’s program to support decarbonisation in Uzbekistan – Fitch Ratings

BAKU, Azerbaijan, Dec.2

By Natavan Rzayeva - Trend:

Uzbekhydroenergo (UGE) JSC's extensive investment program will help re-balance Uzbekistan's electricity generation capacity mix, decreasing fuel-fired generation to less than 75 percent by 2030, Trend reports referring to the Fitch Ratings.

The Uzbek power sector depends heavily on the domestic gas and oil industry, as about 90 percent of the country's electricity generation capacity is based on hydrocarbon, with the remaining 10 percent coming from hydro power.

"The government of Uzbekistan is striving to increase the share of other energy sources by decreasing the number of gas-fired thermal plants, which should reduce the environmental impact of the power industry. The government is actively attracting foreign international investments to satisfy increased investment needs in order to fulfill these obligations," said the report.

According to Fitch the Uzbek government will continue to provide guarantees for the construction of UGE's large hydro power plants (HPPs), including the Pskemskaya (400MW) and Mullalakskaya (150MW) HPPs, to be commissioned in 2025-2026, which will result in the share of state guaranteed debt remaining above 90 percent in 2021-2026.

Fitch upgraded UGE to 'BB-' from 'B+' in October following the state's continued support of the company in the form of guarantees for all company debt, as well as and the fact that the company has no plans to place non-guaranteed Eurobonds in the near future.

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