Medium- and long-term development plans for the fuel and energy sector reviewed
Uzbekistan
President Shavkat Mirziyoyev reviewed a presentation on the prospects for developing the electric power industry and improving project management mechanisms within the fuel and energy sector.
Energy sector development is a key factor in ensuring economic growth, investment activity, and public well-being.
In recent years, the sector has actively attracted private sector and foreign capital, with major projects implemented to establish new generating capacities, develop renewable energy sources, and modernize grids. As a result of these reforms, the total capacity of solar and wind power plants has exceeded 6.3 gigawatts. The number of hydroelectric power plants has surpassed 100, with their combined capacity approaching 2.5 gigawatts. Expanding the use of renewable energy sources results in significant annual savings of natural gas.
A goal has been set to increase the country's economic output to $300 billion by 2030, while the population is expected to exceed 41 million. Electricity consumption in the industrial sector alone is projected to rise from 38 billion to 53.5 billion kilowatt-hours by 2030. The growth of electric transport and data centers will also place additional strain on the energy system.
In light of this, the need was highlighted to develop generating capacities that outpace demand growth, increase grid transmission capacity, and establish sufficient reserve capacity.
According to the plan, the country's generating capacity will be raised to 46.1 gigawatts by 2030, enabling the annual generation of approximately 129 billion kilowatt-hours of electricity. By 2035, plans are in place to increase capacity to 57.2 gigawatts and annual electricity generation to 154.7 billion kilowatt-hours.
Various scenarios for electricity consumption growth were examined during the presentation.
Calculations indicate that, assuming moderate consumption growth through 2030, the necessary balance between generation and demand will be maintained. However, accelerated development of the economy, industry, electric transport, and digital infrastructure will create a need for additional generating capacity.
The Head of State emphasized the need to formulate energy sector plans that account for rapid economic growth and to ensure a sufficient volume of reserve capacity is always available.
Accordingly, proposals were reviewed regarding the construction of additional wind farms and energy storage systems, as well as the acceleration of solar and wind energy projects.
At the same time, the need to reconsider certain projects was highlighted—specifically those with low economic viability, no identified funding sources, or protracted implementation timelines. Key criteria for selecting new generating capacity should include not only output capacity but also the cost of electricity generation, grid connectivity, compatibility with energy storage systems, and the impact on the overall energy balance.
As the share of renewable energy sources increases, the importance of energy storage systems grows as well.
These systems make it possible to store electricity generated by solar and wind farms during the day and feed it into the grid during evening peak demand hours. This reduces the need to burn additional gas at conventional power plants and enhances the overall resilience of the energy system.
Currently, 26 projects for energy storage systems with a total capacity of 4.2 gigawatts have been outlined, with 17 already in the implementation stage. Proposals have been made to develop additional projects in this area by 2030. Alongside the expansion of generating capacity, the President emphasized the need to proactively build the backbone transmission networks and substations required to deliver electricity to consumers.
Plans for the period up to 2030 include the construction of nine new 220-kilovolt substations and seven 500-kilovolt substations, as well as nearly 5,000 kilometers of new power transmission lines. This will enable the connection of new power plants to the grid and facilitate increased energy exchange between regions.
In particular, plans are in place to commission a number of strategically important 500-kilovolt power transmission lines and new substations between 2027 and 2029. The presentation specifically addressed the progress of their construction, financing issues, and measures to resolve existing delays.
Discussions also covered the creation of new infrastructure for the digital economy, leveraging the significant potential for renewable energy development in Karakalpakstan.
A proposal was made to link the region's prospective wind power plants with 1-gigawatt capacity data centers by constructing a new substation and 220-kilovolt transmission lines. This infrastructure will enable the integration of new data centers into the power grid, attract high-tech investment, and effectively utilize the region's energy potential.
During the presentation, special attention was paid to proposals for fundamentally transforming the system used to develop and implement investment projects in the sector.
Currently, projects often originate from an investor's initiative. Issues such as land allocation, grid connection, technical specifications, tariffs, and investment agreements are negotiated separately with various agencies. This leads to delays, the duplication of agency functions, and a failure to adequately account for the power system's needs within individual projects.
In light of this, a new management model has been proposed.
Going forward, energy projects will be developed primarily based on the future needs of the economy, the population, and the regions. Demand will be assessed first, followed by planning for the necessary generation capacities and infrastructure facilities. Projects will be structured with pre-determined sites, grid connection points, and technical solutions, while investors will be selected through an open and competitive process.
The tasks and areas of responsibility for each agency will also be clearly defined. The Ministry of Economy and Finance will forecast demand, the Ministry of Energy will be responsible for strategic planning and technical policy, and the Energy Market Development and Regulation Agency will regulate market relations and tariffs. Agencies responsible for investment will attract investors through open tenders, while local authorities will handle issues related to land plots and necessary infrastructure.
It is also proposed to generate precise forecasts of energy resource requirements broken down by region and sector, and to adopt annually updated three-year investment plans based on this data. This will enable coordinated, long-range planning for the development of generating capacities, electrical grids, and essential infrastructure.
A long-term concept for the supply of fuel and energy resources through 2050 is to be developed. This concept will comprehensively address national resource potential, demographic and economic growth, energy efficiency improvements, the development of renewable and nuclear energy, and energy security issues. It is proposed that the concept be reviewed every five years.
The Head of State emphasized that every new energy project must meet the long-term needs of the economy and the population, and that a constant balance must be maintained between production, grid load, and consumption.
Officials have been instructed to ensure the timely launch of major ongoing projects, take concrete measures—in collaboration with investors—to address projects facing implementation delays, ensure the balanced development of generating capacities and electrical grids, expand energy storage systems, and implement a new planning and management model within the sector.
In recent years, the sector has actively attracted private sector and foreign capital, with major projects implemented to establish new generating capacities, develop renewable energy sources, and modernize grids. As a result of these reforms, the total capacity of solar and wind power plants has exceeded 6.3 gigawatts. The number of hydroelectric power plants has surpassed 100, with their combined capacity approaching 2.5 gigawatts. Expanding the use of renewable energy sources results in significant annual savings of natural gas.
A goal has been set to increase the country's economic output to $300 billion by 2030, while the population is expected to exceed 41 million. Electricity consumption in the industrial sector alone is projected to rise from 38 billion to 53.5 billion kilowatt-hours by 2030. The growth of electric transport and data centers will also place additional strain on the energy system.
In light of this, the need was highlighted to develop generating capacities that outpace demand growth, increase grid transmission capacity, and establish sufficient reserve capacity.
According to the plan, the country's generating capacity will be raised to 46.1 gigawatts by 2030, enabling the annual generation of approximately 129 billion kilowatt-hours of electricity. By 2035, plans are in place to increase capacity to 57.2 gigawatts and annual electricity generation to 154.7 billion kilowatt-hours.
Various scenarios for electricity consumption growth were examined during the presentation.
Calculations indicate that, assuming moderate consumption growth through 2030, the necessary balance between generation and demand will be maintained. However, accelerated development of the economy, industry, electric transport, and digital infrastructure will create a need for additional generating capacity.
The Head of State emphasized the need to formulate energy sector plans that account for rapid economic growth and to ensure a sufficient volume of reserve capacity is always available.
Accordingly, proposals were reviewed regarding the construction of additional wind farms and energy storage systems, as well as the acceleration of solar and wind energy projects.
At the same time, the need to reconsider certain projects was highlighted—specifically those with low economic viability, no identified funding sources, or protracted implementation timelines. Key criteria for selecting new generating capacity should include not only output capacity but also the cost of electricity generation, grid connectivity, compatibility with energy storage systems, and the impact on the overall energy balance.
As the share of renewable energy sources increases, the importance of energy storage systems grows as well.
These systems make it possible to store electricity generated by solar and wind farms during the day and feed it into the grid during evening peak demand hours. This reduces the need to burn additional gas at conventional power plants and enhances the overall resilience of the energy system.
Currently, 26 projects for energy storage systems with a total capacity of 4.2 gigawatts have been outlined, with 17 already in the implementation stage. Proposals have been made to develop additional projects in this area by 2030. Alongside the expansion of generating capacity, the President emphasized the need to proactively build the backbone transmission networks and substations required to deliver electricity to consumers.
Plans for the period up to 2030 include the construction of nine new 220-kilovolt substations and seven 500-kilovolt substations, as well as nearly 5,000 kilometers of new power transmission lines. This will enable the connection of new power plants to the grid and facilitate increased energy exchange between regions.
In particular, plans are in place to commission a number of strategically important 500-kilovolt power transmission lines and new substations between 2027 and 2029. The presentation specifically addressed the progress of their construction, financing issues, and measures to resolve existing delays.
Discussions also covered the creation of new infrastructure for the digital economy, leveraging the significant potential for renewable energy development in Karakalpakstan.
A proposal was made to link the region's prospective wind power plants with 1-gigawatt capacity data centers by constructing a new substation and 220-kilovolt transmission lines. This infrastructure will enable the integration of new data centers into the power grid, attract high-tech investment, and effectively utilize the region's energy potential.
During the presentation, special attention was paid to proposals for fundamentally transforming the system used to develop and implement investment projects in the sector.
Currently, projects often originate from an investor's initiative. Issues such as land allocation, grid connection, technical specifications, tariffs, and investment agreements are negotiated separately with various agencies. This leads to delays, the duplication of agency functions, and a failure to adequately account for the power system's needs within individual projects.
In light of this, a new management model has been proposed.
Going forward, energy projects will be developed primarily based on the future needs of the economy, the population, and the regions. Demand will be assessed first, followed by planning for the necessary generation capacities and infrastructure facilities. Projects will be structured with pre-determined sites, grid connection points, and technical solutions, while investors will be selected through an open and competitive process.
The tasks and areas of responsibility for each agency will also be clearly defined. The Ministry of Economy and Finance will forecast demand, the Ministry of Energy will be responsible for strategic planning and technical policy, and the Energy Market Development and Regulation Agency will regulate market relations and tariffs. Agencies responsible for investment will attract investors through open tenders, while local authorities will handle issues related to land plots and necessary infrastructure.
It is also proposed to generate precise forecasts of energy resource requirements broken down by region and sector, and to adopt annually updated three-year investment plans based on this data. This will enable coordinated, long-range planning for the development of generating capacities, electrical grids, and essential infrastructure.
A long-term concept for the supply of fuel and energy resources through 2050 is to be developed. This concept will comprehensively address national resource potential, demographic and economic growth, energy efficiency improvements, the development of renewable and nuclear energy, and energy security issues. It is proposed that the concept be reviewed every five years.
The Head of State emphasized that every new energy project must meet the long-term needs of the economy and the population, and that a constant balance must be maintained between production, grid load, and consumption.
Officials have been instructed to ensure the timely launch of major ongoing projects, take concrete measures—in collaboration with investors—to address projects facing implementation delays, ensure the balanced development of generating capacities and electrical grids, expand energy storage systems, and implement a new planning and management model within the sector.
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