President Shavkat Mirziyoyev chaired a meeting on Wednesday on the state of affairs in the energy sector, the presidential press service said.
“In Uzbekistan we have the capacities that generate a total of 14,000 MW of energy, 86% of which are produced by thermal power plants. However, 84% of the capacities in those thermal power plants were commissioned nearly half a century ago, with the existing capacities loaded only by 83%”.
“If in the developed countries, 240-260 g of fuel is required to generate 1 kW of energy, then at some plants in Uzbekistan twice as much fuel is needed. With the economy growing, the demand for electricity will reach 20,000 MW by 2030. In Uzbekistan, electricity is produced mainly through burning natural gas. By 2030, we will have to burn even more gas”.
“The commissioning of a nuclear power plant will offer a major solution and cut fuel consumption, but it will take another 8–10 years to build. Therefore, it is necessary to promptly address the existing problems and develop the industry, the most important thing is to ensure tangible results in this system in a relatively short period of time”.
The President set the task to create another 12.5 thousand MW capacities by 2030, in particular, through construction of combined-cycle plants, the nuclear power plant, hydroelectric power plants, modernization of existing facilities, renovation of power units at the Syrdarya, Tashkent, Navoi and Takhiatash thermal power plants, as well as the introduction of public-private partnership mechanisms into the sector.
The Committee for Investment and Uzbekenergo were instructed to take measures for the construction of combined-cycle and gas-turbine units of 3,900 MW total capacity, coal-fired thermal power plants, solar and wind power plants in Angren city and in Surkhandarya province.
To speed up the construction of new power generation facilities, Mirziyoyev pointed out the need from the next year to allocate 15% of revenues from the sale of electricity to finance investment projects and repay loans.
He ordered to attract the private sector to the industry and speed up the development of the legal, institutional and technological foundations for the public-private partnership mechanism. “In Turkey, 60% of electricity, in South Korea - 20% are produced by private companies. But in Uzbekistan, this issue is still not regulated”.
According to figures stated at the meeting, the share of power grids with life span of over 30 years is at 62%, 57% of distribution network and 39.6 thousand transformers need to be renewed.
Shavkat Mirziyoyev instructed to take steps to strengthen the financial condition of Uzbekenergo in order for the company to duly perform its investment obligations. It is planned to extend by 3 years Uzbekenergo’s principal debt repayment term to the Uzbekistan Fund for Reconstruction and Development in 2019-2021.
He also noted the need to increase the debt collection for electricity bills from households and criticized the delay in the introduction of an automated electricity metering system. As a result of the cost revision of the contract concluded with a foreign company to implement this system for 1.4 million households in the Bukhara, Jizakh and Samarkand provinces, work is delayed by 15 months from the deadline.
The President ordered to introduce the automated system in other provinces in 2019-2021 through loans from the Asian Development Bank.
“Uzbekenergo should focus on introducing modern technologies and clean energy when building new generating capacities”.
He instructed to organize the provision of transit services to the energy grids of neighboring states and hold the talks on this issue, as well as to develop a "road map" on enhancing Uzbekistan’s energy transit and export potential.
