Market Overview

As one of the largest energy markets in Central Asia with a current generation capacity of 12.9 gigawatts, Uzbekistan is well positioned to address the sector's challenges and ensure the country's energy security.

The energy intensity of Uzbekistan has decreased by about 45% over the past 15 years. Nevertheless, the country remains one of the most energy-consuming countries in the world- 35% more energy is spent on the production of a unit of GDP here than in neighboring Kazakhstan and three times more than in Germany.

Uzbekistan has great potential for the use of renewable energy sources, namely hydro, solar and wind energy. This potential is sufficient to reduce the country's dependence on natural gas, which provides 85% of the total electricity production. The development of the renewable energy sector will also open up new business opportunities and help the government of Uzbekistan fulfill its commitment to reduce greenhouse gas emissions per unit of GDP by 10% by 2030 compared to 2010 levels.

Renewable energy plan development strategy

The main strategy for the development of renewable energy sources is reflected in the Law of the Republic of Uzbekistan "On the Use of Renewable Energy Sources" and other regulatory legal acts, in accordance with which it is planned to reduce the use of traditional types of energy in economic sectors in the coming years through the introduction of renewable energy sources, bringing their share by 2030 up to more than 25% of the total volume of electricity generation, as well as in order to create favorable conditions for participants in the implementation of RES, significant state support is provided, such as :

- exemption from customs payments (with the exception of customs duties) of equipment, raw products and materials, components, devices, spare parts, technological documentation that are not produced in the republic;

- exemption from payment of all types of taxes for a period of five years from the date of state registration of manufacturers of renewable energy installations;

- tariffs for electricity generated from renewable energy sources are determined on the basis of competitive bidding;

and a number of other preferences and benefits not only for individuals and companies that create RES facilities and supply energy from RES, but also for consumers of this energy.