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Saturday, June 15, 2024
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Macroregional Context




New energy projects set to electrify the Uzbek nation

Uzbekistan is poised to significantly enhance its energy infrastructure with several ambitious projects announced in the first half of April, signaling a major leap towards sustainable development and economic growth across multiple regions.

Expansive Solar and Wind Energy Projects: In a noteworthy move, Chinese companies China Poly Group and China Electric are set to construct a 500 MW solar power plant in the Forish district with an estimated cost of $350 million. This plant is expected to generate 1.1 billion kilowatt-hours annually, enough to power approximately 450,000 households. The initial phase, which will connect 200 MW to the grid, is scheduled for completion within this year.

Adding to the renewable energy boost, Saudi Arabia’s ACWA Power has signed a $263 million deal for the Nukus 2 wind project in Uzbekistan. This project, structured as a public-private partnership, includes a novel integration of a battery energy storage system and follows a build, own, operate, and transfer model. ACWA Power has also initiated the first phase of a green hydrogen project capable of producing 500,000 tonnes of green ammonia annually once fully operational.

From the Turkish front, Akgun Energy plans to establish a 100 MW solar power plant in the Surkhandarya region. The decision to move forward with this project was solidified following positive discussions about the region’s conducive sunny conditions for solar power generation.

Industrial and Economic Growth Through Energy Projects: Further invigorating Uzbekistan’s energy sector, President Shavkat Mirziyoyev recently initiated several new projects in the Jizzakh region’s energy and industrial sectors. Among these are seven ventures in the Gallaaral industrial zone valued at $500 million, focused on metallurgy and manufacturing, which are expected to create approximately 5,000 jobs.

In 2024 alone, Uzbekistan aims to integrate 2.6 GW of new capacity into the energy grid, impacting regions such as Navoi, Bukhara, Namangan, Tashkent, and Kashkadarya. The nation’s strategic pivot towards “green” energy is expected to increase the share of renewable sources in total energy generation to 30% this year.

Conclusion: These large-scale initiatives underscore Uzbekistan’s commitment to enhancing its energy independence and adapting to global shifts towards sustainable resources. By improving its energy infrastructure, Uzbekistan not only aims to meet its increasing domestic energy needs but also sets the stage for a greener and more resilient economic landscape.

Implications for Business and Industry: The surge in energy capacity and the diversification into renewable sources present lucrative opportunities for businesses in the energy, construction, and industrial sectors. Enhanced energy availability could lead to lower operational costs and more sustainable practices for businesses operating within Uzbekistan. Additionally, these developments are likely to attract further foreign investment into the country’s burgeoning energy market, promising a robust future for its economic and environmental health.

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