Uzbekistan Approves New Support Mechanisms for Small Hydroelectric Power Plants
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Uzbekistan Approves New Support Mechanisms for Small Hydroelectric Power Plants

According to Presidential Decree No. 298, signed on August 19, 2026, Uzbekistan will introduce new simplified procedures and support mechanisms for the development of small and micro-hydroelectric power plant networks.

Under this decree, it is planned to develop a specialized digital platform by February 1, 2027. This platform will be used to identify potential sites for small and micro-hydro projects, as well as to coordinate, monitor, and manage the implementation and subsequent operation of these projects.

The document establishes unified rules for private sector participation in small and micro-hydro energy projects. Furthermore, standardized guidelines covering the design, construction, commissioning, and operation of power plants will be introduced, which will include mandatory standards for environmental and social responsibility.

Mechanisms for Developer Selection and Pricing

Electronic auctions will be launched on the E-auksion trading platform to conclude electricity purchase agreements for developers of small and micro-hydro projects with a capacity of up to 5 MW. These auctions will determine starting and minimum prices based on official tariffs for Category II consumers.

For micro-hydro stations with a capacity of less than 500 kW, the starting price will be set at 150% of the Category II consumer tariff, with a minimum lower limit of 50%. For small hydro facilities with a capacity from 500 kW to 2 MW, the starting and minimum prices will be 120% and 40% of the base tariff, respectively. As for facilities with a capacity from 2 MW to 5 MW, the starting price will be 100%, and the minimum lower limit will be 30% of the corresponding tariff.

Simplified norms will apply to micro-hydro projects with a capacity of up to 100 kW, which are classified as Category II low-construction-risk projects.

Micro-hydro installations with a capacity of up to 50 kW, whose structure volume does not exceed 300 cubic meters, are exempt from the requirement to obtain expert review of mandatory urban planning documentation, as well as from state architectural and construction supervision. Project developers will also be able to carry out construction work in stages, based on the electrical section of the project documentation.

The decree also addresses human resource training for this sector. Starting from the 2026/2027 academic year, higher education institutions in Uzbekistan will begin implementing a dual education system for specialties related to small-scale green energy, including small hydropower generation.

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