TASHKENT, Uzbekistan, July 13. The Asian Development Bank (ADB) has allocated $125 million for a new project in Uzbekistan, Trend reports.
According to the bank, the project "Digitization for Decarbonization - Upgrading the Power Transmission Network" aims to support the Uzbekistan government's program in transitioning to low-carbon technologies and developing a green economy.
It aims to enhance the reliability and stability of the power transmission network, improve operational efficiency, and enhance monitoring and management of the energy system through the implementation of modern digital and telecommunications technologies. The project also aims to reduce power outages, transmission losses, and support the priority reform of state-owned enterprises through improved corporate governance of the National Electric Grids of Uzbekistan Joint-Stock Company (NEGU).
ADB emphasized that since the mid-2010s, the demand for electricity in Uzbekistan has been increasing by approximately 4-5 percent annually, with the government projecting a growth rate of around 6-7 percent per year until 2030.
The government has set ambitious targets to increase power generation capacity to meet growing demand and gradually phase out old and inefficient thermal power plants, with new generating capacities expected to be built by the private sector. These targets include the construction of 7 gigawatts of solar photovoltaic and 5 gigawatts of wind power over the decade.
Additionally, according to ADB, the government of Uzbekistan is implementing policy reforms to address these challenges.
"The policy includes the establishment of an autonomous tariff commission, adoption of a new cost-reflective tariff methodology, revenue collection improvement through a nationwide advance metering program, and the creation of a stronger financial management system for NEGU. Moreover, the project will support the modernization of the energy system through the implementation of modern monitoring infrastructure and equipment. It will improve the financial position of NEGU by reducing energy losses, minimizing power outages, and enhancing its capacity to meet growing needs in different regions of Uzbekistan. Furthermore, the project's reform components for NEGU will complement ongoing policy interventions and strengthen the institutional capacity of NEGU," concluded ADB.