The potential of Uzbekistan's hydropower industry will be increased almost three times

According to statistics, the average annual volume of electricity production in our country for the period 1991-2016 amounted to 43 billion kWh. And last year, 74.3 billion kWh of electricity was produced, which is 2.3 billion kWh more than in 2021.

Last year, 62.3 kWh of electricity was supplied to consumers. That's 3.2 billion kilowatts.hours, or 5.5 percent more than in 2021.
From 1991 to 2016, over 2,655 megawatts were commissioned in the country, and in 2016-2022 - more than five thousand megawatts. Industrial development, population and production growth are also increasing the demand for electricity from year to year.
Today, about 85 percent of the electricity produced corresponds to the share of thermal power plants powered by gas. The rest is provided by renewable energy sources - hydroelectric power plants and solar photovoltaic plants. It is expected that by the end of next year, their ranks will be replenished with wind farms.
It is planned that by 2026, the share of "green" energy sources will account for 30 percent of the electricity generated in the country. The question arises: what role will HPPs play in creating the projected electric capacity?
In fact, hydroelectric power plants are an effective means of providing stable daily electricity. Its cost is much cheaper and more environmentally friendly than from other sources.
Hydropower is the main renewable energy source. In this process, the development of "green" energy is becoming increasingly important not only to provide the population with energy, but also to preserve the environment. Therefore, special attention is paid to this area in Uzbekistan. In particular, in accordance with the decree of the President of the country "On measures for further reform of the hydropower sector" dated March 30, 2023, a program of additional measures for the further development of hydropower for 2023-2030 was approved. According to the document, due to promising projects, by 2030 the total capacity of hydropower will be increased to five thousand megawatts.
As part of the Investment Program, Uzbekhydroenergo JSC implements 11 investment projects with a total value of $ 1 billion 363 million with a capacity of 741 megawatts and an annual output of about 2.1 billion kilowatt-hours. As part of these projects, the joint-stock company will launch seven hydroelectric power plants with a total cost of 124 million dollars, an average annual generation volume of 552 million kilowatt-hours and a total capacity of about 200 megawatts.
In 2023, state-owned enterprises will produce seven billion kilowatt-hours of electricity and on this basis revenues to the state treasury will amount to 714 billion soums (as of December 20, 2023, $1 = 12376.33 soums), as well as 1 trillion 423 billion soums will be allocated for the implementation of investment projects. At the same time, information was provided on the creation of thousands of megawatts of electricity in addition to the projects envisaged in the hydropower program.
The President noted the need to develop a five-year program in 2024-2028 to increase the capacity of hydroelectric power plants to six thousand megawatts (2.7 times), the average annual output from seven billion kilowatt-hours to 17 billion kilowatt-hours, and for this it is necessary to attract foreign direct investment in the industry.
According to the updated hydropower strategy, an additional 3,775 megawatts will be created to the current capacity of 2,225 megawatts through the implementation of 37 promising projects, and by 2028 it is necessary to bring the total energy production to six thousand megawatts, thereby increasing the average annual production capacity by 17-19 billion kilowatt-hours, or almost three times.
On the way to these historic goals, by the end of this year, a commercial proposal will be received from the French company EDF for the investment project for the construction of the Mullalak hydroelectric power station on the Pskov River with a capacity of 170 megawatts, the cost of which will amount to $ 338 million, and a foreign investor will be determined through an open tender in the first quarter of next year.
It is also planned to develop and offer to foreign investors a feasibility study for the construction of three investment projects (Korongitugai HPP, Naryn Cascade HPP and Yukoripskem HPP) worth $ 1 billion 446 million and with a capacity of 726 megawatts. In 2024, it is planned to attract foreign financing and move to the active part of the project in subsequent years.
In recent years, there has been a need in the country to create regulatory capacities in the energy system in connection with the large-scale construction of renewable energy sources, including solar power plants. At the same time, solar, wind and other energy sources lead to a decrease in production capacity as a result of working at certain times. During this period, the deployment of regulatory forces by the HPP is an important measure to ensure the stability of electricity demand and meet daily peak consumption loads.
To this end, it is planned to build two pumped storage power plants (Khodjikentskaya and Verkhnepskemskaya) with a total cost of two billion dollars and a capacity of 1,200 megawatts. Considering that major projects of such importance are being implemented in our country for the first time, reputable foreign partners with extensive experience in the preparation of their feasibility study are involved.
In the Tashkent region, a cascade is planned consisting of large hydroelectric power plants - Mullalak, Pskov, Yukoripskem, Korongitugai and Oygainskaya - on the Pskov River with a total capacity of 1,700 MW; Khodjikent and Yukoripskem pumped storage power plants, Naryn cascade HPP on the Naryn River with a capacity of 224 MW - in Namangan; Mizat and Kstut HPP on the Tupalang River with a total capacity of 75 Megawatt - in Surkhandarya region. When implementing such large-scale projects and attracting foreign direct investment and loans to the industry, our favorable reputation and prestige at the international level are important.
For four years, Uzbekhydroenergo JSC has been maintaining the international credit rating BB of the international rating agency Fitch Ratings, which is part of the leading rating structure of the troika in the world, at a stable level. In addition, in 2023, he upgraded the independent credit rating by one notch and the long-term issuer rating to B+.
The joint-stock company also plans to receive an international ESG rating on environmental, social and corporate governance in the near future with the involvement of the most prestigious agencies in the world.
Another great achievement for the JSC was the introduction of a green energy certificate for the first time in Central Asia at enterprises producing energy in accordance with it. According to the relevant presidential decree dated May 12, 2023, from July 1 of this year, for the first time, a system of "green energy" certificates for electricity produced at energy-producing enterprises has been introduced. Today, measures are actively being taken to acquire this certificate, which are carried out through the national exchange of the country. Its presence, in turn, serves as a kind of guarantee for attracting foreign investment in the industry.
A number of measures are also being taken to attract external gratuitous assistance (grants). In particular, at the international forum "One Belt, One Road" in Beijing (China) in October this year, an agreement was reached on the allocation of $28 million of Chinese grant funds for the construction of the Charvak wind farm with a capacity of 20 megawatts in the Bostanlyk district of the Tashkent region. As part of this project, four new generation wind farms will be built, each with an energy capacity of five megawatts. As a result, an average of 43 million kilowatt-hours of additional electricity will be produced annually.
In order to make more efficient use of the existing hydropower potential, this year JSC is implementing 23 projects for the construction of microelectric power plants with a total capacity of 27 megawatts. Two microelectric power plants with a total capacity of 0.4 megawatts have been commissioned today: Ispaisoy microelectric power plant in Tashkent and Zavrok in Andijan regions.
This microhydroelectric power plant project is offered as an example to all local governments as the "Andijan Experience". By the end of this year, 13 more projects with a total capacity of 14.4 megawatts will be successfully launched. In 2024, it is planned to implement 18 microhydroelectric power plant projects with a total capacity of 17 megawatts.
Great attention is also paid to the development of the industry and the broad involvement of the private sector in it. All legal and economic conditions have been created for this. As part of the implementation of the Presidential Decree "On additional measures for the introduction of energy-saving technologies and the development of renewable low-power energy sources" dated September 9, 2022, a land lease system was introduced for a period of 20 years for entrepreneurs wishing to build small and micro hydropower plants, and a state-guaranteed purchase of electricity produced by them was introduced. Having won the microelectric power plant project at the auction, the entrepreneur gives an order to the design institute for the development of design estimates. Having received a project suitable for the selected location and meeting the specified requirements, he orders the equipment and begins construction and installation work.
Entrepreneurs can guarantee to sell surplus electricity produced at a fixed tariff to the state. Moreover, this makes it possible to sell it at a price almost three times higher than the cost of electricity generated by enterprises owned by JSC.
Abdugani Sanginov.
Chairman of the Board of Uzbekhydroenergo JSC,
Senator of the Oliy Majlis of the Republic of Uzbekistan.