Uzbekistan to introduce a new energy market management system, private energy companies to appear in regions

As the press service of the head of state reported, in accordance with the growing needs of the economy and the population, the fuel and energy complex is being modernized. It is carried out on the basis of a strategy for the further development and reform of the electric power industry of the republic, approved by a presidential decree dated March 27, 2019. 

In particular, on the basis of the former Uzbekenergo JSC, three separate structures for the production, transportation and sale of electricity were created. 7 million consumers are connected to the automated control and metering system for electricity, and the collection of payments is 100% ensured. Foreign investors have been attracted to 19 projects for the construction of solar, wind and thermal power plants worth $7 billion. 

“At the same time, there is still a lot of work to be done to create competition in the sphere, increase the volume and quality of energy supply. In particular, in order to modernize the energy system and fully meet the needs of the sectors of the economy and the population, about 20 billion dollars of investment will be required in the coming years. This requires the establishment of a competitive energy market and the creation of conditions for private investors. In this regard, the meeting discussed the creation of a new energy market management system. 

In order to create equal conditions for connecting private generating enterprises, it was proposed to share the powers of the Uzbekistan National Electric Networks JSC for the purchase of electricity and the management of backbone networks. At the same time, the company – a single purchaser will buy electricity from all power plants on a contractual basis and sell it to large enterprises and enterprises of regional electric networks. And the operator of the main networks will be responsible for the transportation of electricity, reducing losses and technical management of the energy system. 

Next year, private electricity retail companies will be organized in 14 districts and cities as an alternative to Regional Electric Networks JSC.
 
The meeting pointed out the need to accelerate the transformation processes, financial recovery of enterprises and transform them into companies that can attract direct investment. It was instructed to take measures to optimize the operating costs of enterprises in the industry, modernize power lines. 

The Government and industry leaders have been tasked with developing a training program for highly qualified personnel necessary for the implementation of this reform.