REPUBLIC OF UZBEKISTANENERGY POLICY

Ministry of Economy of Uzbekistan

Contents* Uzbekistan: General Information* Current energy policy.
* Energy demand and supply (statistics)* Outlook of energy policy, demand andsupply

2LOCATION

Area: 447.8 thous.sq.km
Population: above 30 mln.

4

Main trendsof social economic development of Uzbekistan
Sustained highg rates of economic ggrowth(7-9% per annum on average)
Growth rate of industry production(in % to the previous year)
1412.712,11210.8
109.1

8.8

8.3

7.78636.364202006• for the period of independence,independence thedevelopment of GDP based onpurchase power parity has increased
3.5 times

2007

2008

2009

2010

2011

2012

2013

• volume of industrial production has
grown more than 3 times during
1990-2012

Main trends of social economic development ofthe Republic of Uzbekistan(in % to previous year)
Forecast#Indicators

2013
2014

Average rates
until 2030

1
1.

GDP growth rate

108 0
108.0

108 1
108.1

107 0-108 0
107.0-108.0

2.

Inflation rate (end of period)

6.8

6-7

5-6

3.

Industry production growth rate

108.8

108.3

108-109

4.

Agriculture production growth rate

106.0

105.8

105-106

5.

Investment growth rate

109.3

109.5

109-1126.

Decreasing of Energy intensity ofEconomy

15.3

115.0

110-115Government support fordevelopment of the economy
For the yyears of Independencepthe aggregate
gg g
tax burden decreased byy almost 3times. Moreover the Government provides additional tax incentives for exporters,
small business enterprises and companies engaged in new investments andstarting production of new goods and products

Tax ratesin 1992-2009

Tax ratesin 2013Legal entities incometax

45%

9%

Individual income tax

13%-60%8%-22%

Value added tax

30%

20%

Single social payment

40%

25%

Single tax payment forsmall enterprises

15,2%

6% (in industry - 5%)

Taxes

Factors assuring sustainable economic developmentof the Republic of Uzbekistan during 2014-2030
2014 2030
1. Retaining macroeconomic stability,
external balance of the economy;
ydomesticand

2. Active industrial policy, aimed for structural changes,
rapid growth of the share of processing industry with theproduction of high value added goods;
3. Implementation of modern innovative technologies,
including environment-friendly
environment friendly and energy-saving;energy saving;
4. Modernization and development of the industrial
infrastructure, particularly transport, power industry,water use and sewer systems,y, as well as means ofcommunication;

State jjoint stock company
p y "Uzbekenergo"gis the governing body in the power energy and coalindustries - the majorjstructural components
pof theeconomy.
The company
organizations.

includes54

The installed capacity of"Uzbekenergo" is 12.5 million kW.

enterprises
powerplants

andofThe ThermalThThl PowerPPl t off totalPlants
t t l capacity
itaboutb t
11,0 mln. kW is the base of the Power System of Uzbekistan.
Th power units
Theit off capacity
it fromf150 tot 800 MW eachh are settup at 5 big Thermal Power Plants
These are such a big Thermal Power Plants as
Talimardjan, Syr-darya, Novo-Angren, Tashkent and Navoiy
TPP’s’ generating over 85% off electric
lpower.

Structure of Installed Capacities of Power Plants in Uzbekistan

The installed capacities of power plants inUzbekistan (MW),(MW) total
including:
1. SJSC “Uzbekenergo”
including:
Thermal power plants (TPP)
Hydro power plants (HPP)
2. Power pplants which are not in jjurisdictionof SJSC “Uzbekenergo”

12,945.0
12,467.0
11,048.0
1,419.7
478.5

Structure of Fuel
Consumption by Thermal Power Plants

Black oil
2.0%

NaturalNtl gas
90.8%

Coa
Coal
7.0%

Undergroundggas
0.2%

*Construction
0.5%

Transport
2 9%
2.9%

services sector
93%
9.3
Population
25.4%

Agriculture
21.8%

Industry
40.1Current Energy policy
and measures* Government strategy
gy in the energy
gy policy
pyForcing the energy efficiency policy*Forcing*Development
pof technology
gy based on
ecologically friendly energy;*Energy efficiency*Effi ias a partt off nationaltilforecasts;;*Priority to the development of RES.
*Growth of energy resources’ commercialexport

*Legalg framework* “Law on Energy”, 2009
* Article 20 of the Law “On rational energy
gy usage”g ((1997))* Decree of the President of the Republic of Uzbekistan dated March01, 2013 no. 4512 "On measures for further development ofalternative energy sources“*The Resolution of the President of the Republic of Uzbekistan

March 01, 2013 no. 1929 "On creation of the International Institutefor Solar Energy“* Draft Law of the Republic of Uzbekistan “On renewable energy
sources” - to be presented to the Parliament.

* Program of expenses
e penses decreasing and cost reduction
red ction in industrial
ind strial
enterprises.

* Decree of the Cabinet of Ministers of 25.07.2011
25 07 2011 № 211 “Improving
Improvingenergy efficiency of industrial enterprises"
International Development Association

supportedbyENERGY SECTOR Development Stages
1-stage:
1t(1991-1996)(1991 1996) – Energy
Eiindependence
ddand reorientation of the fuel-energy market toachieve society’s priority social goals.
2-stage: (1997-2002) - Introduction of market
management mechanisms; incentives fordomestic and foreign investment into sector.
3-stage: (2003-present) – Raising energy

efficiency and introduction of renewableenergy sources

Main measures on Energy Policy*ProgramP
off expenses decreasing
di andd costt reduction
d ti iniindustrial enterprises*Project “Improving energy efficiency of industrial

enterprises supported by International Development
enterprises“
Association (WB)

*Preferential loans and incentives on tax and customs

payments for modernization and re-equipment production
by new energy-efficient technology*Incentives for organizing the domestic production energyenergy
efficient goods*Works on gradually equipping (starting from 2015) households
and new constructing
g houses (ADB)() with17
energy-efficient devices and boilersof domestic production

Program
gfor Priority
y Development
pof Power Industry
y till 2015
NoPower Industry Sector

Quantity ofProjects

Capacity/Length1

Thermal Power Plants

152,639 MW

2Hydro Power Plants

1083.45 MW

3Power Networks
110-500 kV

9933.4 km, 2,099 MW

4Power Distribution Networks
0.4-35 kV

125.1 thousand km, 4,057 transformers,
58 substations (35 kV)

5Electricity Consumption
Metering SystemIntroduction

44.5 million electricity meters

6Others8

Production of composite materials, current
transformers, electricity meters, LED lamps, diesel oilsynthesis and repair companies modernization

*No

Name of project

CapacityMW

Sources of funding

1Construction of CCGT unit at Navoi TPP

478 MW CCGTunit

UFRD loans

2Introduction of gas turbine technology at Tashkent CHPP(with CDM component)

27 MW GTU

NEDO grant

3Expansion of Talimardjan TPP with construction of two
CCGT units

2 х 450 MW
CCGT units

UFRD , ADB, JICA

4

Installation of gas expansion machines at Syrdarya andTalimardjan TPPs with expansion of 220kV open
switchyard at the above plants

20

5Transfer of generating units No 1-5 of Novo-Angren TPP
to all-the-year-round coal burning with modernization of“Angren”
Angren coal strip mine (first stage)

6Construction of generating unit with heat extraction forhigh-ash coal burning at Angren TPP

78UFRD loan

-Loans of UFRD and Exim
Bank (China)130-150

Chinese loan for SCOcountries

Reconstruction of cooling towers No 1 and No 2 and 220kV
open switchyard at Navoi TPP-Own funds

Full-scale modernization of two generating units at
Syrdarya TPP

50

UFRD loan

Total

1,625

* Construction of combined cycle gas turbine in theNavoi TPP

The aim of the project is to provide reliable and quality
supply of heat and electrical energy to consumers in SouthSouthWest power center, Navoi free industrial and economic zoneand reduce unit cost of energy resources for production anddecrease the environmental impact of the HPP.
Capacity: 478 MW.
MWOutput of electrical energy:
3,4 – 3,5 billion kWh annually.
Project implementation period: 2009-2012.
The total cost: 468 million USD.
Sources of finance:
Own funds of SJSC “Uzbekenergo”
g – 131,98 million USD;
Loans of the Fund of Reconstruction and Development of theRepublic of Uzbekistan – 351 million USD;
Loans of commercial banks – 46,8 million USD.

Expansion of Talimarjan TPP with construction of2 combined cycleygeneratorsgwith capacitypy of 450 MW each

Capacity: 2х450 MW.
O t t off electricalOutput
l t i l energy:
6,8 – 7,0 billion kWh annually.
Project implementation period: 2013-2016.
The total cost: 1280 million USD.
Sources of finance:
Own funds of SJCS «Uzbekenergo» – 380 million USD
Loaned finance (ADB,(ADB JICA) – 650 million USD
Fund of Reconstruction and Development of Republic ofUzbekistan – 250 million USD.
USDEnergy demand and supply(statistics)

During the economic reform years,
the Power Industry’s enterprises
annually generate up to 48bln.kW/h48bln kW/hof electric power and more than 10mln. Gcal of thermal p
power that fullyy
meet the economic and population
demand of the country.

billion.kWhPower energy demand andsupply

56.0

54.0

52.0

50.0

48.0

46.0

44.0

42.0

40.0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013*

Outlook of energy policy
demand and supply

Outlook of changing the structure ofpower energy capacities up to 2030th y.
2013 Y.
54.9
54.
54 9 BILLION KWH

*According to the estimate of total hydroelectric potential of 656 rivers withconfluents having overall waterproducing area of 83,369
water-producing
83 369 km2:
1.Total theoretical hydroelectric potential of river flow in the country is 88.5
billion kWh.
2. Total technical hydroelectric
ypotential is 21.09 billion kWh,, including:pg
6.85 billion kWh at operating HPPs;
3.06 billion kWh at canal drop structures;
1 36 billion kWh at irrigation reservoirs;
1.36
9.82 billion kWh on rivers.
3. Presently it is used 63
6.27
27 billion kWh of technical potentialpotential, including:5.17 billion kWh generated by HPPs in SJSC “Uzbekenergo” system;1.1 billion kWh generated by HPPs in the system of the Ministry of Agriculture
anddW
Water R
Resources off theh R
Republic
bli off UUzbekistan.
b kiThe total potential of solar radiation in the Republic of Uzbekistan is estimatedto be in the range from 525 billion kWh up to 760 billion kWh20

Construction of 100MW Solar Photovoltaic Power Plant inSamarkand Province

* The site is located 4 km north of Sazagan settlement

The project implementation is to be done inaccordance
withoff thed
ith theth Decree
Dth President
P id t off thethRepublic of Uzbekistan dated 01.03.2013, №4512 "Onmeasures forff thfurtherddevelopment
lt off alternativelt
tienergy sources“. It’s being implemented by SJC“U b k“Uzbekenergo”” jointly
j i tl with
ith ChineseChipartners
ti FreeinF
industrial economic zone “Navoi”. Its capacity is atth first
thefi t stage
twillill beb 50 MW solarl panelsl per year. InI
the future it is planned to reach capacity of 100 MW
per year.
projectjdocumentation and JVCurrentlyy p
agreements are being finalized.

Technical potential of biogas production
be staIn UUzbekistan

8,9 bln. cubic. m. / year

6 bln. cubic. m. / year
methaneResource of biogas in comparison withttheepoduct o ofo natural
atu a gas in tthe
e republic
epub cproduction

10%60-65 bln. cubic. m./year
production in the republicp
methane p

UNDP Project"Promotion of Biogas
Technology in Uzbekistan”
Technical characteristics
Power300 m3 tonnes
in a year

Volume120 tonnes in ayear

Biofertilisers

2800 tonnes ina year

Loadings

5-7 tonnes
manure daily

Electric power

20 kWt*kWt*h

In accordance with
ith the Decree of the Presidentof the Republic of Uzbekistan dated 01.03.2013,№4512 "On measures for further development ofalternative energy
gy sources“,, on the 25th of July,y,2013, by the Cabinet of Ministers of Uzbekistan wasapproved “TheThe list of experimental and pilot projects
on the implementation of solar and biogas energy in2013 2018 years
2013-2018years”. It includes projects for installationof: biogas units with the total cost of more than 14mln.
l USD,USD PV units
it withith theth total
t t l costt off more thanth
100 mln USD.

THANK YOU FORATTENTION!