President Mirziyoyev Outlines Vision for Electric Power Sector Transformation

Tashkent, The Gulf Observer: President Shavkat Mirziyoyev led a strategic meeting on transforming Uzbekistan’s electric power sector, with a focus on involving private operators in regional grid management to enhance efficiency and attract investment. The session highlighted the country’s efforts to align the sector with modern standards and adapt its infrastructure to meet future demands.

Key reforms in the electric power industry include the separation of production, transmission, and distribution into distinct entities, creating new avenues for investment and market competitiveness. Over the past five years, these reforms have drawn $4.3 billion in investment, increasing the nation’s electricity production capacity by 5.7 gigawatts. Notably, four major industry enterprises—JSC National Electric Grid of Uzbekistan, Regional Electric Grid, Thermal Power Plants, and Uzbekgidroenergo—have earned international credit ratings. These companies are set to undergo further transformation to become competitive, ensuring a steady electricity supply and enhancing their ability to secure independent investment.

During the meeting, President Mirziyoyev underscored cost reduction as a priority for each energy enterprise, achievable through project optimization, loss reduction, and improved procurement. Projections indicate that transferring distribution networks to investors via public-private partnerships could bring in an additional $4 billion for network modernization. Plans are underway to enlist private operators to manage electric grids in Samarkand, Jizzakh, and Syrdarya regions in 2025, further advancing modernization efforts.

President Mirziyoyev issued directives to expedite the transformation of industry enterprises and implement a modern management framework, aligning with the concept established last year to foster a competitive energy market. The coming year has been designated as a year of rational resource use and operational efficiency for the energy sector. Digitalization and transformation of industry practices at the foundational levels will be pivotal in achieving these objectives.

Officials also presented strategic plans for effective cost management within energy enterprises, underscoring the administration’s commitment to building a sustainable and efficient energy market in Uzbekistan.