, Uzbekistan

What Uzbekistan needs to succeed in the energy transition 

The IEA identified three key areas: market reforms, higher efficiency, and electricity security.

Uzbekistan’s market reforms should go hand-in-hand with stronger measures to achieve higher efficiency and the security of its electricity supply, the International Energy Agency (IEA) said.

The report noted that the energy supply of Uzbekistan will likely be dominated by natural gas in the medium term even as its government moved to phase out gas exports by 2025. 

The country also aims to tap into its “largely unexploited” potential in wind and solar, in pursuit of a cleaner energy source by 2030. 

“Uzbekistan has massive room to improve energy efficiency, and the new report strongly encourages the government to recognise that greater efforts to use energy more productively can benefit the economy, reduce pollution and create jobs,” the IEA noted. 

“The report recommends the rapid adoption of the laws, mandates, and incentives needed to realise this efficiency potential.”

READ MORE: ACWA Power breaks ground on 100MW wind project in Uzbekistan

The IEA said that it will need an independent and well-resourced energy regulator. It will also need to manage the debts of state-owned energy companies and their finances. 

“Successful electricity and gas market reforms would also attract new entrants and investment in the renewable electricity sector,” the IEA said. 

“Uzbekistan has recently started to develop its world-class potential for solar and wind power.”

The Uzbekistan government recently announced plans to increase the share of renewable energy in total electricity supply from 10% in 2020 to 25% in 2030.

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