How can Uzbekistan improve its energy supply?

A critical issue is how to increase efficiency, attract investments and new entrants, and diversify energy supply in Uzbekistan’s current energy system in which gas, electricity and heat are supplied by financially burdened monopolies at strongly subsidised prices.

How much energy does Uzbekistan use?

Energy consumption per capita is low in Uzbekistan, around one-quarter below the world average. At the same time, the country’s economy remains one of the most energy-intensive in the world, with energy consumption per unit of GDP more than 50% above the world average.

What is Uzbekistan's energy reform?

The energy reform is part of the government’s broad structural and institutional reform package, introduced by President Shavkat Mirziyoyev, which aims to modernise Uzbekistan’s economy and society and bolster long-term growth through increased efficiency and productivity. The energy reform is being implemented in phases over the next few years.

How much will Uzbekistan spend on electricity subsidies in 2021?

Indeed, the national Electricity Grid reported roughly USD 200 million in losses in 2021. Tariff reforms have therefore been ongoing to phase out subsidies by 2030. Yet, estimates suggest that during this phase out period, Uzbekistan will spend a further USD 55 billion in subsidies.

What is Uzbek energy mix?

Natural gas dominates the Uzbek Energy mix with a share of 85.9%, whilst renewable energy, solely hydropower, accounts for only 0.9% of the share. Electricity generation is also dominated by natural gas with 88% of the share, whilst hydropower holds a share of 7%.

Will electricity demand increase in Uzbekistan?

Electricity demand in Uzbekistan is set to grow in the coming years and decades. The government expects it to roughly double to 2030. The whole population has access to affordable electricity, and growing electrification is set to increase demand from the current low level of supply of around 2 000 kilowatt-hours (kWh) per capita per year.