IEEJ: August 2012 All Right Reserved

IEEJ : May 2012

Energy policy of Uzbekistan:
opportunities, problems andprospects
Kamila Mukhamedkhanova
Center for Economic Research, Uzbekistan

IEEJ: August 2012 All Right Reserved

Uzbekistan: general information
Area: 447,4 thous. sq. km.
Population: 28,0 mln.,(incl. able-bodied population– 16,3 mln)

Uzbekistan borders on 5 countries with the total

population of 60 mln. people

IEEJ: August 2012 All Right Reserved

Energy sector of Uzbekistan
1. Energy sector of Uzbekistan produces:- 27,6% of total output of the industrial sector- 86,2% of total carbon emissions
2. Change in energy prices has a significant impact on
prices of other commodities in the economy

 Energy sector is important to ensure
economic, political and social stability andsustainable development in the long term

IEEJ: August 2012 All Right Reserved

Energy policy of Uzbekistan:
retrospective analysis
1- stage (1991-1996) - Energy independence andreorientation of the fuel-energy market to achievesociety’s priority social goals.
2 –stage (1997 – 2002) – Introduction of market
management mechanisms; incentives for domestic
and foreign investment into the sector.
3 – stage (2003 – present) – Raising energy
efficiency and introduction of renewable energy
sourcesIEEJ: August 2012 All Right Reserved

Energy policy of Uzbekistan: results

Energy self-sufficiency is provided.
Self-sufficiency index is 1.23 VS EU -0,49, OECD – 0,7Energy importer  energy exporter
Energy intensity has been decreasing in the recent years

IEEJ: August 2012 All Right Reserved

Energy supply and demand

Energy production has been increasing since gaining theindependence and reached 60 mln. t.o.e. by 2010.

The demand for primary energy is 50 mln. t.o.e. The
structure of energy supplied to economy and population isdominated by natural gas.

IEEJ: August 2012 All Right Reserved

Access to energy
AccessUrban

RuralGeneral

Electricity

100%

94%97%

Gas supply

100%

90%95%-

Gas transportation system of 13 thous. km-Developed system of transportation anddistribution of electricity (0,4-500 kWt)

Nearly 100% access to gas and electricity sustainable energy supply

IEEJ: August 2012 All Right Reserved

Energy rate policy
20002005200620072008

2011

Energy rates forenterprises, US cents

3,17

2,88

2,98

3,23

3,95

4,6

Energy rates for
population, US cents

1,98

2,75

2,97

3,23

3,95

4,6

Energy rate policy is oriented at raisingenergy efficiency, ensuring social
stability and raising competitiveness ofenterprises.

IEEJ: August 2012 All Right Reserved

Energy efficiency

Despite a sharp decrease, energy intensity is still high Energy saving policy is essential for Uzbekistan

IEEJ: August 2012 All Right Reserved

Per capita energy supply & energy intensity

oooUzbekistan is in between OECD and LDC 
Increase in per capita energy supply could contributeand improve human development
Increase in energy use should be provided without“wasteful use of resources”

IEEJ: August 2012 All Right Reserved

Challenges:


Depletion of gas reserves in 28-30 years, coal reserves –in 50 years

High energy consumption of the economy

 Economic growth may be constrained byincreasing scarcity of traditional energyresources

Energy saving potential is 18-20 mln t.o.e. (35-40% of EC)

The potential of renewables = current consumption ofhydrocarbons * 3 Sound justification for energy efficiency on

supply and demand side and development of RE

IEEJ: August 2012 All Right Reserved

Energy sector of Uzbekistan:
key problem- Main challenge: to preserve the achieved results
and ensure sustainable economic, social andenvironmental development in the long term
- Key problem: - The current “brown” pattern of energy
sector will constrain sustainable growth and developmentin the long-term and present tremendous risks andchallenges for future generations

Transition to a new “Green” model of energy sector
is important to ensure sustainable development

IEEJ: August 2012 All Right Reserved

Uzbekistan: expected benefits fromenergy saving and introduction of RE Total annual benefits from export of saved amount of

natural gas - $4, 664 bln
 Total annual benefits via carbon market schemes andmechanisms – $ 625,8 mln
 “Green” jobso renewables
175 th. jobs by 2020
270 th. jobs by 2050
o green buildings
15 th. jobs by 2020
120 th. jobs by 2050
o transportation
95 th. jobs by 2020
175 th. jobs by 2050

IEEJ: August 2012 All Right Reserved

Key strategies:
 Improving technologies to ensure energy

saving and introduce renewables; Development of the legal framework for thenew pattern of energy sector;
 Institutional reformation of the energy sector

and creation of incentives for energy
efficiency and development of RE

IEEJ: August 2012 All Right Reserved

Energy Policy: CER’s Research activitiesTransition to Green Economy in Uzbekistan: conceptual framework

Alternative energy sources: opportunities and perspectives

Green buildings in Uzbekistan: technologies, legal framework andincentives



Draft Law “On renewable energy sources”

Towards Rio +20: agenda for Uzbekistan

Transition to Green Economy in Energy Sector: Baselineassessment for Uzbekistan

“Green” transportation in Uzbekistan

IEEJ: August 2012 All Right Reserved

Transition to Green Economy in Energy Sector:
Baseline Assessment for Uzbekistan
1. Analysis and assessment of the current situation applying 4 A principleo Accesso Availabilityo Affordabilityo Acceptance
2. Qualitative analysis of greening potential (policies, institutions and capacities)
Identification of key problems for sustainable “green” development at the following levels:o Technologies
o Managemento Normative baseo Incentives
3. Quantitative analysis of “greening” potential: how much resources can be saved and atwhich costs. Construction of conservation supply curve for energy sector: the costs ofsaving per unit, resulting saving per technology
4. Development of effective strategy framework and practical recommendations for further
progress towards green energy (new policies and programs; financial mechanisms ofimplementation etc.)

IEEJ: August 2012 All Right Reserved

Thank you!

Contact : report@tky.ieej.or.jp