BAKU, Azerbaijan, June 22. In Uzbekistan, the use of innovative battery storage with solar plants is still new, but the potential benefits are significant, the International Finance Corporation (IFC, a member of the World Bank Group) Regional Manager for Uzbekistan and Turkmenistan Neil McKain told Trend.
“One key innovation in the solar energy sector is the integration of battery energy storage systems. These systems are crucial for addressing the intermittent nature of solar power, as they store excess energy produced during peak sunlight hours and make it available during periods of low solar generation or high demand. This not only ensures a stable energy supply but also enhances the efficiency of solar plants,” he said.
Neil McKain highlighted the potential benefits of battery storage in Uzbekistan, including grid stabilization, decreased dependence on fossil fuels, and improved power supply to remote regions. In addition, it can help the country achieve its objectives of decreasing greenhouse gas emissions and shifting towards a more environmentally friendly energy system.
“For these reasons, supporting energy storage technology is a strategic focus for the government of Uzbekistan, as it will extend the reach and uses of renewable energy. By helping to introduce technologies in the energy sector, IFC supports Uzbekistan’s efforts to ramp up its use of renewables, improve energy security, increase grid stability, and expand access to electricity,” the Regional Manager of IFC stressed.
He believes the battery energy storage sector is at a turning point, with costs and technologies projected to improve. In many nations, the technology is now affordable for on- and off-grid applications. New project development and benefits are mostly focused on developed economies.
Meanwhile, the IFC and Uzbekistan have joined forces to strike a new deal that aims to grease the wheels of the country's legal and regulatory frameworks, making it more enticing for foreign direct investment (FDI) to flow in and give a boost to economic growth.
The agreement will help bring Uzbekistan's current investment law up to speed with global best practices to attract foreign investment. Thus, the IFC with Japan will support Uzbekistan in preparing a new investment law that states market entry rules, ensures foreign investors and their investments are treated equally, gives investors access to international dispute settlements, and focuses only on FDI and private investments.