Uzbekistan intends to transform its approach to selecting energy generation projects. Instead of relying on investor initiatives, the government will pre-assess the need for new capacity and offer ready sites through open tenders.
President Shavkat Mirziyoyev announced these plans on October 16 during a meeting with investors in the fuel and energy sector. He recalled that in the early stages of renewable energy development, companies themselves proposed locations for construction, which facilitated the rapid launch of solar and wind power plants and attracted significant investment.
However, this method led to generating facilities being concentrated in specific regions, increasing electricity transmission costs for consumers in other parts of the country. Mirziyoyev emphasized that further sector development must consider the needs of the entire energy system, not just the interests of individual projects.
How the new system will work
According to the proposed approach, state bodies will determine the required generation capacity for each region, develop corresponding projects, and put them out for competitive selection. Investors will be able to familiarize themselves with the implementation terms in advance, including the location of land plots, grid connection parameters, timelines, and procedures for purchasing and paying for electricity.
Mirziyoyev also stressed the need to ensure equal conditions for all market participants. The government plans to pay special attention to mechanisms for reducing investment risks and payment discipline.
The first stage involves holding tenders for six projects for the production of solar and wind energy with a total capacity of 2200 MW. The President invited interested companies to participate.
The reform of the energy investment project preparation system was discussed previously, on September 22. At that time, officials noted that coordinating land allocation, grid connections, tariffs, and investment agreement terms with various state agencies complicated and delayed project launches.
The existing procedure could also lead to overlapping powers between agencies and hinder power planning according to overall electricity demand. Under the new system, the state will first assess future electricity demand, then determine the necessary infrastructure and generation capacity, offering investors projects with already established technical specifications.
During the October 16 meeting, Mirziyoyev also announced the signing of agreements for six major energy projects totaling $4.7 billion. These projects involve the creation of 3000 MW of generating capacity and 400 MW of energy storage systems.