Uzbekistan is set to overhaul its aging electricity distribution infrastructure through a $150mn program aimed at improving supply reliability and integrating renewable energy sources, with support from the World Bank and the country's own Regional Electric Power Networks (REPN).
The World Bank’s Board of Executive Directors has approved a $100mn concessional credit for Uzbekistan’s first-ever Program-for-Results (PforR) financing. REPN will contribute an additional $50mn in co-financing.
The funding will help address major inefficiencies in Uzbekistan’s power distribution system, where technical losses stand at around 13% as of 2024. Much of the infrastructure is over 30 years old, leading to frequent power disruptions and high maintenance costs.
"This investment is crucial to support the government's program to modernize and expand the electricity distribution infrastructure through 2030, which requires an estimated $3bn in total," said Tatiana Proskuryakova, World Bank Director for Central Asia. "We hope other development partners and private investors will join us in supporting REPN in this crucial endeavor."
The project is essential to Uzbekistan’s broader energy goals, including the deployment of 25 gigawatts of renewable energy capacity by 2030. Without critical upgrades, the current grid cannot support such an expansion.
Key components of the five-year program include:
- Construction and modernization of 6,000 kilometers of low-voltage lines.
- Installation of 1,200 distribution transformers with a capacity of 250 MVA.
- Deployment of 150,000 smart meters and 4,000 concentrators to reduce commercial losses and enable automation.
The program will prioritize improvements in the Republic of Karakalpakstan and Surkhandarya region, aiming to enhance electricity reliability for households and businesses.
It also includes institutional reforms, such as:
- Developing a new methodology for planning distribution upgrades and connecting decentralized renewable sources.
- Improving financial performance through better planning and corporate governance.
- Increasing female participation in technical and managerial roles within REPN—from 9% in 2025 to 14% by 2029.
By the end of the program in 2029, Uzbekistan expects to reach a 90% customer satisfaction rate for distribution services, integrate up to 50 megawatts of renewable energy from small producers, and cut annual CO₂ emissions by up to 450,000 tons.
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