In a landmark event for New Uzbekistan, President Shavkat Mirziyoyev recently addressed the nation on the eve of the New Year, marking the launch of major joint projects in the field of green energy. This initiative is a significant step towards the country’s ambitious goals set five years ago to increase renewable energy sources.
Strategic shift towards renewable energy
The government began its journey by reforming the energy sector, seeking advice from leading experts from the World Bank, Asian Development Bank, Asian Infrastructure Investment Bank, and the European Bank for Reconstruction and Development. The result was a solid legal framework based on market principles, replacing administrative-command mechanisms and monopoly with an open, transparent, modern management system.
This strategic shift has opened doors for the private sector and foreign companies, leading to the establishment of a Ministry of Energy and structural divisions responsible for specific areas. International consultants and consulting companies were hired to explore the possibilities for developing solar, wind, and hydropower energy in the country, resulting in a dramatic increase in foreign investors’ interest and trust.
Achievements and Future Prospects
Two solar stations in Karmana and Nurabad districts have been commissioned under a 100% foreign direct investment project, producing one billion kilowatt-hours of green energy so far. Today, the country stands at the threshold of another significant milestone: the connection of six large solar and wind plants with a total capacity of 2,400MW to the grid.
The first phase of three solar power plants has been built in Jizzakh, Samarkand, and Surkhandarya regions by the UAE-based company Masdar, a close friend and partner of Uzbekistan. In addition, Masdar is constructing a modern wind power station in the Tomdi district, with a capacity of 100MW set to be commissioned.
The Gezhouba Group is also launching the generation of the first 400MW at solar power plants in Bukhara and Kashkadarya. Remarkably, all these projects have been implemented on a PPI basis through foreign direct investments.
Once commissioned, these projects, worth $2bn, will generate 6bn kilowatt/hour electricity and save up to 2bn cubic meters of natural gas. This will provide 2mn homes with uninterrupted and guaranteed electric energy and create an added value worth $4bn in the industry and services sectors.
Testament to international cooperation
President Mirziyoyev expressed his pleasure after projects involving China, Uzbekistan’s strategic and large trade partner, in an astonishingly short period of 9 months. Despite global problems with production chains and logistics, effective collaboration with companies such as Goldwind, Sungrow, Jolliwood, and Lonji has been achieved.
President Mirziyoyev expressed his sincere gratitude to all those who actively participated in these projects, including Mr Mohamed Al Ramahi, Chairman of Masdar Company, Mr Wu Yun, Vice-President of China Energy, and Mr Lin Xiaodan, Chairman of the Gezhouba Group, as well as CEOs of Dong Fang, SMAC, SEPCO, and other companies. He also thanked leading international financial institutions and all foreign and local specialists who have made a commendable contribution to the projects.
Shavkat Mirziyoyev of Uzbekistan outlined the country’s strategic vision for the development of green energy. The President highlighted the importance of renewable energy in achieving the country’s ambitious industrial and infrastructural goals, mitigating climate change, and capitalizing on the country’s vast potential for green energy.
Doubling industrial production by 2030
The President stated that Uzbekistan aims to double its industrial production by 2030, with a focus on elevating the metallurgy, petrochemicals, and mechanical engineering sectors. To achieve this, the country plans to implement over 500 major industrial and infrastructure projects worth $150bn. The President emphasized the crucial role of guaranteed and stable energy resources in accomplishing these goals. He estimated that the country’s electricity demand will increase from the current 83bn to 120bn kilowatt-hours in the next six years, primarily covered through renewable energy sources.
Mitigating climate change
Uzbekistan is actively seeking ways to mitigate the negative impacts of climate change, a global problem. The country is putting forward important proposals and initiatives at international summits. Recently, at the UN Climate Change Conference in Dubai, countries worldwide agreed to triple green generation. Uzbekistan fully supports this initiative and will continue its active investment policy to increase the capacity of green energy sources to 27GW by 2030.
Capitalizing on green energy potential
Uzbekistan possesses enormous potential for green energy. To encourage the industry, the country has launched the “Solar House” system, providing preferential loans and subsidies for the installation of solar panels and ensuring the guaranteed purchase of generated electricity. This year alone, 50,000 households and entrepreneurs have installed solar panels in the country. With over 7 mn dwellings in the country, this creates a huge market for investors.
Green energy certificate
Nowadays, a special priority on a global scale is being given to products made from green energy. The Green Energy certificate is being widely introduced. Uzbekistan is making initial steps towards supplying green energy to the Asian and European markets in the future through a clear plan and steadfast efforts.
Positive impetus to other industries
The green energy sector will give a highly positive impetus to the development of other industries and services. As part of today’s projects, domestic enterprises have supplied electrical equipment and construction materials worth $100 mn. Currently, four enterprises in the country have started manufacturing solar panels, and two more enterprises are operating in the production of steel structures. Around 50 projects in green energy create an additional cable market worth $500 mn.
Transitioning into competitive market mechanism
The tremendous work being undertaken today represents another vivid practical result of significant reforms started in this sector. By consistently implementing these measures, Uzbekistan is gradually transitioning into a competitive market mechanism. The country has recently made an important decision to establish an energy market regulator. Currently, projects for the construction of 22 solar and wind power stations with a total capacity of 9GW are being actively implemented in the country.
Infrastructure improvement
The country is focusing on infrastructure improvement for introducing new generating capacities. Over the next five years, a total of 70,000 km of low-voltage power lines, more than 22,000 transformers, and over 100 substations will be fully renovated. Moreover, 10,000 km of new high-voltage transmission lines will be built.
President Mirziyoyev concluded his address by expressing his confidence in further expanding fruitful cooperation in the future for transforming ambitious initiatives into specific projects. This strategic vision marks a new era in Uzbekistan’s journey towards a sustainable future powered by green energy.
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