The President of Uzbekistan, Shavkat Mirziyoyev, announced the signing of agreements for six major energy projects totaling $4.7 billion USD. These projects are intended to increase generation capacity by 3000 MW and energy storage system capacity by 400 MW.
Mirziyoyev emphasized that energy is the foundation of the country's development, and reliable energy supply is critically important both for attracting business investments and maintaining public confidence in the future.
Over the last decade, Uzbekistan has opened its energy market to private investment and introduced public-private partnership mechanisms to address accumulated sector problems, modernize outdated facilities, and meet growing demand. During this period, $35 billion in investments have been attracted to the sector, and the number of partner countries has increased from two or three to more than ten.
Thanks to the expansion of solar, wind, and hydropower production, the share of renewable energy in total electricity generation has reached 31%, with installed capacity of such facilities amounting to 11.1 GW. Electricity production per capita has grown by 28%, reaching 2300 kWh.
New phase of cooperation and development goals
The President noted that the industry is entering a new stage of interaction with investors. He stressed that projects must not only increase generation but also improve supply reliability and reduce power losses.
Uzbekistan aims to develop 22,000 MW of new capacity by 2030. Annual electricity production is expected to exceed 129 billion kWh, with renewables accounting for 54% of the share.
A recently adopted presidential decree clearly delineated the roles of the state and private business in the fuel and energy sector. At this new stage, project implementation will be carried out through open tenders, transparent rules, and strict adherence to agreed conditions.
In the initial phase of accelerated renewable energy development, projects were mainly located in regions proposed by the investors themselves. This helped attract significant funds, but in some areas, the concentration of generation capacity led to increased costs for transmitting electricity to other regions.
Mirziyoyev stated the need to create not individual power plants, but a single, interconnected energy system. In the future, requirements for regional capacity will be determined in advance, and prepared projects will be put up for open tender. Information on land plots, grid connection points, schedules, electricity purchase terms, and payment conditions will be published before each tender. All investors will face the same requirements, and mechanisms for ensuring payment discipline and reducing risks will be strengthened.
Tenders for six solar and wind energy production projects with a total capacity of 2200 MW will soon be announced, and the president invited investors to participate.
Long-term planning and system integration
Uzbekistan also plans to develop and publish its first National Energy Master Plan by 2050. The grid connection map should be presented by March 1st of next year, and the full master plan by July 1st.
These documents will define the regions where electricity demand is expected to grow, the necessary infrastructure to meet this demand, and the locations where new generating units can operate most effectively. This will help investors plan their activities in the long term.
Renewable energy producers will also be given opportunities to earn additional income through certificates and carbon credits. Mechanisms will be introduced for the fair distribution of benefits received between the state and investors, taking into account international environmental obligations and existing agreements.
Mirziyoyev emphasized that building power plants alone is not enough; it is also necessary to expand the networks that deliver electricity to consumers. Generation, transmission, and energy storage systems must function as a single entity.
Currently, the Fergana, Andijan, and Namangan regions partially cover their electricity needs through supplies from other parts of the country. The development of new industrial zones and large enterprises will create additional load on the energy system.
The rapidly growing demand for electricity is driven by sectors such as artificial intelligence technologies and data centers. Locations for these facilities will be chosen in advance based on land availability, grid connection capabilities, and access to renewable energy sources. Every major data center project must include primary and backup power sources, energy storage systems, and cooling infrastructure. It is expected that investors will implement solutions that ensure efficient use of electricity and water.
Over the past five years, more than $2 billion has been allocated to the modernization of electrical grids. The next main priority is updating network infrastructure and increasing the capacity of energy storage systems.
By 2030, Uzbekistan plans to build 5000 kilometers of power lines and 16 large substations, while increasing the capacity of energy storage systems to 4.5 GW. A significant part of these projects will be implemented in the Karakalpakstan, Bukhara, Jizzakh, Samarkand, Namangan, Kashkadarya, and Tashkent regions.
In the future, priority will be given to comprehensive projects combining generation, energy storage, and electrical grids. Uzbekistan also plans to cooperate with investors on pumped-storage power plant projects designed for long-term energy storage.
The country is looking beyond the domestic energy market. A project to supply renewable electricity to Europe via the Caspian Sea, in cooperation with Azerbaijan and Kazakhstan, is approaching practical implementation. Promising directions have also been identified in the markets of Afghanistan and South Asia.
Legislation provides for 10-year exemptions from land and property tax for energy storage projects. To eliminate ambiguities in these provisions, the Tax Code will explicitly state that the exemption applies not only to sites with batteries or solar panels but also to necessary substations, control buildings, and auxiliary infrastructure.
Private sector participation in electricity distribution networks will also be expanded. The approach implemented in Samarkand is planned to be extended to the Jizzakh and Tashkent regions to reduce power losses and improve service quality.
Industrial development and resource base
Mirziyoyev noted that developing power plants alone will not be sufficient; it is also necessary to expand the networks to deliver electricity to consumers. Generation, transmission, and energy storage systems must operate as an integrated system.
Currently, the Fergana, Andijan, and Namangan regions partially cover their electricity needs through supplies from other parts of the country. The development of new industrial zones and large enterprises will create additional load on the energy system.
Artificial intelligence technologies and data centers are among the areas driving rapid growth in electricity demand. Locations for these facilities will be chosen in advance based on land availability, grid connection capabilities, and access to renewable energy sources. Every major data center project must include primary and backup power sources, energy storage systems, and cooling infrastructure. Investors must implement solutions that efficiently use electricity and water.
Over the past five years, more than $2 billion has been allocated to the modernization of electrical grids. The next main priority is updating network infrastructure and increasing the capacity of energy storage systems.
By 2030, Uzbekistan plans to build 5000 kilometers of power lines and 16 large substations, while increasing the capacity of energy storage systems to 4.5 GW. A significant part of these projects will be implemented in the Karakalpakstan, Bukhara, Jizzakh, Samarkand, Namangan, Kashkadarya, and Tashkent regions.
In the future, priority will be given to comprehensive projects combining generation, energy storage, and electrical grids. Uzbekistan also plans to cooperate with investors on pumped-storage power plant projects designed for long-term energy storage.
The country is looking beyond the domestic energy market. A project to supply renewable electricity to Europe via the Caspian Sea, in cooperation with Azerbaijan and Kazakhstan, is approaching practical implementation. Promising directions have also been identified in the markets of Afghanistan and South Asia.
Legislation provides for 10-year exemptions from land and property tax for energy storage projects. To eliminate ambiguities in these provisions, the Tax Code will explicitly state that the exemption applies not only to sites with batteries or solar panels but also to necessary substations, control buildings, and auxiliary infrastructure.
Private sector participation in electricity distribution networks will also be expanded. The approach implemented in Samarkand is planned to be extended to the Jizzakh and Tashkent regions to reduce power losses and improve service quality.
Mirziyoyev stated that 'the cheapest energy is saved energy.' The government also intends to attract private investment to modernize social infrastructure facilities and water supply pumping stations using energy-efficient technologies. Investors will be able to earn income from energy savings and carbon credits.
The President noted that Uzbekistan is entering international energy markets by utilizing its own potential, including natural resources, industrial enterprises, engineers, and educated young population. Combined with investments and advanced technologies, these assets can create significantly greater added value.
The 'O‘Z' concept focuses on developing internal potential, cooperating with the world on equal terms, and taking responsibility for the common future. Energy projects require large volumes of copper products, cables, transformers, metal structures, and construction materials. Mirziyoyev stated that local producers are capable of competing in terms of quality, price, and compliance with standards.
The Chinese company China Energy used locally produced products for nearly 40% of the equipment and materials involved in the construction of eight energy storage facilities. Their cost amounted to about $200 million USD. Last year, the total value of local goods and services across all energy sector projects reached $740 million USD. The President stated that this figure can be increased three to fourfold. The Agency for Industrial Cooperation and local associations will work with producers to determine the products needed by investors, establish quality and volume requirements, and organize supplies.
Currently, Uzbekistan imports significant volumes of high-voltage equipment, energy storage system modules, and wind turbine components. Twelve potential localization projects worth $850 million USD have been prepared to create domestic production of these items.
A special industrial zone with tax and customs benefits will be created in the Farish district of Jizzakh province for the production of new products required for the construction of a nuclear power plant in the region. Mirziyoyev invited investors to participate in these projects as well.
Oil and gas sector and human resources
Cooperation in geological exploration, field efficiency improvement, and deep raw material processing will be expanded in the oil and gas sector. Work is currently underway to explore six investment blocks in the Ustyurt region in cooperation with SOCAR from Azerbaijan and the British company BP. Another 128 blocks have been prepared in other regions for presentation to foreign partners. Preliminary estimates indicate that reserves in these blocks amount to 5.8 trillion cubic meters of natural gas and 560 million tons of liquid hydrocarbons. The main criteria for developing these resources will be competitiveness, transparency, and economic efficiency.
The President emphasized that Uzbekistan should move beyond producing electricity from natural gas and focus on its deeper processing to create greater added value. The complex for producing synthetic liquid fuel in the Kashkadarya region currently produces up to 1.5 million tons of fuel and other products annually.
He also pointed to the need to implement the MTO project in the Bukhara region, which involves the production of polyethylene, polypropylene, and PET products. The modernization of Bukhara and Fergana refineries is planned.
Mirziyoyev expects investors to propose economically viable projects based on new technologies and meeting environmental requirements.
About 3.8 million households in Uzbekistan use liquefied petroleum gas. Market mechanisms are gradually being introduced in this sector, as it was previously under state monopoly. A pilot project involving private business has been launched in the Andijan region, and next year the government plans to transfer liquefied gas supplies to the private sector nationwide. The President stressed that uninterrupted supply, safety, and quality of service must remain the main priorities throughout this transition.
The effective operation of new energy facilities also depends on a qualified workforce. The Saudi company ACWA is beginning to equip technical colleges in Karakalpakstan, Bukhara, and Syrdarya regions, training hundreds of young specialists annually in new energy fields. Mirziyoyev called on other investors to participate in training specialists who meet international standards and the needs of their projects. The government is ready to transfer local technical colleges to the management of investors for this purpose.
From the new academic year, domestic universities will increase admission quotas for programs related to energy. Additionally, 50 young people will receive state grants annually to study at leading global universities.
Energy projects require significant investment and complex infrastructure. Even one delay in land allocation, facility grid connection, or issuance of technical specifications can affect the realization of the entire project. Companies such as ACWA, Vision Invest, DataVolt, Voltalia, and EDF have offered to solve these problems through continuous dialogue. In response, the president announced the creation of an Investor Council in the Fuel and Energy Sector, chaired by Saida Mirziyoyeva, Head of the Presidential Administration. The Council will promptly resolve issues faced by investors at every stage of project implementation, from land allocation to commissioning.