Uzbekistan issued over one million I-REC(E) certificates in the green energy sector

Electricity consumption in Uzbekistan's industrial sector is projected to increase by approximately 40% by 2030. The consumption volume will rise from 38 to 53.5 billion kilowatt-hours. This additional load on the energy system will be driven by the development of electric transport and data centers.

Shavkat Mirziyoyev reviewed a presentation on the prospects for power industry development, provided by the president's press service. It was noted that the current capacity of solar and wind stations already exceeds 6.3 gigawatts, and the number of hydroelectric power plants (HPPs) has surpassed 100, reaching a capacity of about 2.5 gigawatts.

According to approved plans, generating capacity should reach 46.1 gigawatts by 2030, ensuring the production of about 129 billion kilowatt-hours. More ambitious goals have been set for 2035: capacity should grow to 57.2 gigawatts, and output to 154.7 billion kilowatt-hours.

As part of the plan implementation, 26 energy storage system projects with a total capacity of 4.2 gigawatts have been formed, 17 of which are already under implementation. By 2030, the construction of nine 220-kilovolt substations and seven 500-kilovolt substations is planned, along with the laying of nearly five thousand kilometers of new power lines. In Karakalpakstan, the possibility of connecting wind farms with one-gigawatt data centers is being considered.

The President emphasized the need to develop plans that account for high rates of economic growth, as well as ensuring an adequate reserve of capacity. A new project management methodology has been proposed: first, the required demand is determined, then the necessary infrastructure and capacity are planned, and only after that is the investor selected through a competitive selection process.

The distribution of responsibilities between agencies is defined as follows: the Ministry of Economy and Finance will handle demand forecasting, the Ministry of Energy will develop the strategy, and the agency for energy market development and regulation will oversee tariffs. Furthermore, a long-term concept for the fuel and energy complex development until 2050 is provided, with mandatory review every five years.

At the meeting, the President was shown changes in the country's transport network. It is planned that by 2030, the volume of transport services will double, 9.1 billion dollars in investment will be attracted to the industry, and the export of transport services will reach 5.7 billion dollars.

Decisions have been made in Uzbekistan to strengthen support for the electrical engineering sector, which includes providing enterprises with access to working capital loans at an annual rate of 6%, expanding interest rate compensation, and creating conditions to attract significant foreign investors. These new measures were approved by a presidential decree and will take effect on October 1st.

Enterprises can receive loans through commercial banks for working capital replenishment for up to two years, with a three-month grace period provided. The maximum loan amount for one company is $5 million, and the rate is fixed at 6% per annum, of which 2 percentage points belong to the bank's margin.

The National Business Guarantee Company can act as a guarantor for half of the loan, up to a maximum of 20 billion soums. The remaining part of the loan can be secured by liquid assets, an insurance policy, an export contract, or other forms of collateral.

Special conditions for copper procurement

Special conditions are provided for purchasing copper raw materials through the exchange: the enterprise independently pays 25% of the cost, and the remaining 75% is transferred by "Uzsanatexport" within three days. After this, the enterprise is obliged to repay the received amount within 90 days, with interest charged at an annual rate of 6% for delays. The maximum debt of one enterprise to "Uzsanatexport" must not exceed $3 million.

State compensation for interest expenses

From 2026 to 2028, the state will subsidize part of the interest expenses on loans intended for investment projects in the electrical engineering industry. This mechanism applies to loans up to the equivalent of 20 billion soums, regardless of the total loan amount.

For loans in national currency, the compensation covers the portion of the rate exceeding the Central Bank's base rate, reaching 10 percentage points. For foreign currency loans, the state compensates for part of the rate exceeding 6%, but the limit of this compensation is 5 percentage points.

The compensation will be provided under a "2+1" scheme: it is valid for the first two years under established conditions, and in the third year, it is maintained provided that the enterprise's annual revenue from the sale of goods or services increases by at least 15% compared to the previous year.

Attracting major international investors

A dedicated block of measures has been developed regarding the attraction of large global corporations into the fields of electrical engineering, electronics, and robotics. This refers to investors who have appeared in the Forbes Global 2000 ranking over the past three years, possess international supply chains, and are ready to invest at least $50 million in a project.

Investment agreements with such companies will stipulate requirements to increase added value by more than 40% within three years, as well as directing at least 3% of annual profit to research and development activities.

Investors in special economic zones will be offered ready-made production facilities equipped with all necessary utilities: electricity, gas, water, sewage treatment, and railway infrastructure. Furthermore, large investors will receive exemption from land tax, property tax, and profit tax for a period of ten years.

It was previously noted that Uzbekistan aims to increase exports of electrical engineering products to $5 billion by 2030, and the total production volume in this industry and related sectors is planned to reach $11 billion.