Uzbekistan is preparing a new package of measures to support energy-storage projects, bring more private companies into the management of distribution power networks and accelerate energy-saving initiatives. The plans were outlined on October 16 during an open dialogue with investors in the fuel and energy sector.
Tax rules for storage projects to be clarified
A key issue raised during the discussion was the inconsistent application of existing tax incentives for electricity-storage projects. Current legislation provides such projects with a ten-year exemption from land and property taxes, but businesses have faced uncertainty over which infrastructure assets qualify for the relief.
To remove these ambiguities, Uzbekistan plans to amend the Tax Code and explicitly state that the exemptions cover not only the areas occupied by batteries or solar panels, but also the substations, control buildings and auxiliary infrastructure required for their operation.
Private operators to enter more regional power networks
The government also intends to expand private-sector participation in distribution electricity networks. Private companies are expected to be brought into the management of power grids in two additional regions, extending a model designed to improve the operation and development of local distribution infrastructure.
For international companies active in construction, engineering, energy infrastructure, manufacturing and investment, the proposed changes could make Uzbekistan’s market more predictable. Clearer tax treatment for the full asset base of storage facilities may improve project economics, while wider private-sector access to distribution networks could create opportunities for technology providers, contractors, equipment manufacturers and operators. The impact will depend on how quickly the promised legal amendments are adopted and implemented in practice.
