Uzbekistan has proposed a radical overhaul of its system for preparing and implementing investment projects in the energy sector. The proposals were presented to President Shavkat Mirziyoyev on September 22 during a presentation on the development of the electric power industry. According to government assessments, the current procedure leads to project delays, duplication of functions among agencies, and does not always fully account for the needs of the energy system.
At present, in most cases, after an investor submits an initiative, the land plot, grid connection, technical specifications, tariffs, and investment agreements are negotiated separately. This slows down the process and reduces efficiency. Under the new model, the prospective demand for electricity will be determined first, followed by the necessary generation capacities and infrastructure. Projects will be formed in a ready-to-go state with clearly defined land plots, grid connection points, and technical solutions. Investors will be selected through open and competitive tenders.
The new system clearly distributes responsibilities among agencies: the Ministry of Economy and Finance will be responsible for forecasting demand for fuel and energy resources, while the Ministry of Energy will handle strategic planning and technical policy. The Agency for Development and Regulation of the Energy Market will deal with market relations and tariff regulation. Investment agencies will attract investors through open tenders, and local authorities will resolve land allocation and necessary infrastructure issues. Additionally, it is proposed to form forecasts of demand for fuel and energy resources by region and sector, and on this basis, update three-year investment plans annually.
This is expected to enable mutual coordination of the construction of new power plants, grids, and other infrastructure. In the long term, a concept for providing Uzbekistan with fuel and energy resources until 2050 is planned. The document should cover the country's resource potential, population and economic growth, energy efficiency improvement, development of renewable and nuclear energy, and energy security issues. The concept is proposed to be reviewed every five years.
Shavkat Mirziyoyev emphasized that new energy projects must meet the long-term needs of the economy and population, and that generation development must be closely linked to grid capacity and consumption levels. Officials were instructed to ensure the timely commissioning of major projects, take measures jointly with investors on delayed projects, develop generation and electric grids in a balanced manner, expand energy storage systems, and introduce a new planning model in the sector.
Recall that Uzbekistan will revise energy projects with low economic efficiency, unclear funding sources, and extended timelines. New capacities will be assessed not only by the volume of electricity production but also by its cost and grid connection possibilities.
Source: www.gazeta.uz