The Asian Development Bank (ADB) has approved a substantial $200mn loan to support Uzbekistan in its efforts to enhance energy reliability and efficiency. This financial support is dedicated to the modernization and digitization of the energy distribution system in Uzbekistan.
The project, titled "Transforming Distribution Networks and Improving Resilience," is part of Uzbekistan's broader strategy to develop a sustainable and low-carbon energy sector. It focuses on upgrading 26 distribution substations across the country into digital substations equipped with state-of-the-art technologies such as Supervisory Control and Data Acquisition (SCADA) systems.
These digital substations will significantly improve the resilience and reliability of power distribution, particularly during natural disasters and extreme weather events. Furthermore, they will help reduce power losses in the regional electricity supply, contributing to a more efficient energy distribution network.
According to Evgeniy Jukov, ADB's Central and West Asia Director, "Modernizing Uzbekistan's aging distribution network is crucial for the country's long-term green and low-carbon strategy. This project not only improves the quality of energy services but also facilitates the integration of renewable energy sources into the grid, supporting Uzbekistan in its transition towards a more sustainable energy future."
Uzbekistan's power distribution system serves approximately 7.6mn households and industrial consumers. However, it faces challenges due to outdated infrastructure, resulting in unreliable electricity supply to consumers. Power outages, especially during winter and high-demand periods, have had significant implications, affecting essential services like schools and clinics.
The project also aims to strengthen gender inclusivity within the energy sector by promoting the training and employment of women and girls in technical roles. It will provide a $250,000 technical assistance grant to support gender mainstreaming initiatives at the state distribution company, "Regional Electric Networks" (REN), and enhance collaboration between REN and Tashkent State Technical University to promote female participation in the energy sector.
The French Development Agency (AFD) partially manages $75mn co-financing component of the project, reinforcing efforts to transform Uzbekistan's energy distribution infrastructure and improve energy efficiency.
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