Tashkent, Uzbekistan (UzDaily.com) -- Minister of Energy of Uzbekistan Alisher Sultanov held negotiations with an EBRD delegation led by the managing director (Sustainable Infrastructure Group) of the bank, Nandita Parshad on 6 October.

As the head of the delegation of the European Bank for Reconstruction and Development (EBRD) noted at the beginning of the meeting, Uzbekistan currently, despite the difficult conditions associated with the pandemic, is a regional leader in the effectiveness of reforms in the energy sector.

Welcoming the members of the delegation, Alisher Sultanov expressed gratitude to the EBRD for the support provided in the completion of the First phase of the tenders. So, in September, the winner of the tender for the construction of the first industrial wind power plant with a capacity of 100 MW in Karakalpakstan was announced. It was ACWA Power (Saudi Arabia), which offered an electricity tariff of 2.5695 cents per kWh.

As part of Phase 2, the installation of 3 measuring meteorological masts was completed in September, which will collect data for the future 200 MW wind farm. The first stage of the tender is scheduled to start in early 2022.

Discussions are also underway with technical consultants and the EBRD to find new sites for the development of the program for the construction of wind farms (Phase 3).

This partnership with the EBRD contributes to achieving the goal of increasing total electricity generation to 30 GW by 2030. At the same time, at least 25% of electricity will come from renewable energy sources (5 GW from solar energy, 3 GW from wind and 3.9 GW from hydropower).

During the negotiations, the parties also discussed the issue of innovations in the energy sector, including the already existing experience of other countries in the use of energy storage systems, as well as in the field of network regulation when introducing renewable energy sources. The Ministry of Energy noted that at the stage of holding tenders, it is advisable to introduce a requirement for potential investors to generate and accumulate electricity. Today, such experience already exists in world practice. To study it, it was proposed to organize webinars for specialists from the Ministry of Energy, JSC "NESU" and the Central Dispatch Office of the Ministry of Energy.

The progress of the project for the construction of a 500 kV Sarymai-Dzhankeldy power transmission line with a throughput capacity of 500-600 MW was considered. Negotiations are underway with the EBRD on financing this project.

During the negotiations, the current work within the framework of the Memorandum on low-carbon areas signed between the Ministry of Energy, MIFT and the EBRD was analyzed. In order to develop a "road map" to study the possibility of creating a carbon-neutral sector of electricity production in Uzbekistan by 2050, a consortium of international experts was involved. Their analytical work has confirmed the technical and economic feasibility of Uzbekistan’s transition to a zero-carbon energy sector by 2050.

Alisher Sultanov emphasized the work done on the development of the new version of the law "On Electric Power Industry", the draft of which was submitted to the Ministry of Justice for consideration. During the development of the law, with the assistance of the EBRD, international consultants were involved.

“It is important that the new law is a “law of direct action”. This once again confirms that we are carrying out reforms not for the sake of reforms, but, first of all, to create the market mechanisms in the energy sector that are needed today,” the minister said.

It was noted that an example of already implemented market mechanisms in the energy sector of the country, in particular, is the sale of gasoline, which, since 2017, has been carried out through exchange trading.

Work on the creation of a legal framework that meets the new realities of the energy sector in a market economy continues. In particular, with the technical support of the EBRD, consultants are being selected to develop regulatory documents for the newly created Energy Market Regulator.

An important role in the energy sector of modern Uzbekistan is played by the popularization of renewable energy sources, both at the industrial and domestic levels. A system of incentives has been developed for consumers using RES installations, in particular for their households. In particular, part of the costs for the installation of solar panels and other installations based on renewable energy sources is returned, citizens will be able to sell surplus electricity to the state through the AMR system and its “smart meters”.

During the negotiations, the parties outlined the next stages of cooperation within the framework of the existing agreements and discussed the prospects for partnership.