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THE MINISTRY OF ENERGY WILL BE ESTABLISHED IN UZBEKISTAN

President approved the action plan on reforming power industry. It is planned to create Ministry of Energy.

Ministry of Energy will be established in Uzbekistan, which will be responsible for the whole spectrum of issues on organization and regulation of fuel and power sector operation. This is envisaged under the Presidential Decree on “Accelerating development and ensuring the financial sustainability of electric power industry” as of October 23.  The document approved the Plan of practical measures concerning power industry reforming and creation of committee responsible for that, which is along with ADB, EBRD and the World Bank Group should develop by May 2019 long term investment program for the period up to 2030 on expansion, modernization and diversification of generating capacities with bringing them to 20 thousand MW.

It is planned to develop by March modern scheme of organizing the production, transportation, distribution and sale of electric power, considering large-scale involvement of private and foreign direct investments into enterprises producing and distributing (selling) electric power, including those working under public and private partnership.

Whereas the government shall preserve total control over transportation of electric power.Gradually, a modern wholesale electricity market will be formed on the basis of tender purchases of products directly from generating enterprises.

New methodology of electric power tariffs calculation based on coverage of current and capital costs should be approved by April 1, which stimulates involvement of private sector in the electricity sector.  Interdepartmental tariff committee will be created under the Cabinet of Ministers.

The resolution stipulates the start of realization of 100 MW solar PV pilot project in Navoi region in 2019 jointly with the International financial corporation. The modernization of electric power distribution networks in Andizhan, Namangan and Fergana under the PPP conditions and the project for long-term lease of distribution networks in Tashkent are going to be launched.

A «Road map» on increase of generating capacity, modernization of electrical networks, improvement of record and monitoring of electric power consumption in 2018-2020 was accepted.

It envisages realization of 7 investment projects on modernization of currently operating capacities and commissioning new with total output of 1984 MW and project cost of 2,6 billion of US dollars as well as annual reconstruction of currently operating electric networks and construction of new with total length of 7100 km, installation and modernization of 2500 transformer points.

By the end of 2021, it is planned to connect 7 million consumers to the automated system of monitoring and record of electric power, with bringing coverage share to 100%.

The resolution also says about opening a branch of National Research University “Moscow Energy Institute” in Uzbekistan.


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