Tashkent, Uzbekistan (UzDaily.com) -- In recent years, relations between Uzbekistan and China have undergone an amazing transformation, becoming the epitome of successful interstate cooperation.

Thanks to the active efforts of the Leaders of the two states, Uzbek-Chinese relations have reached a new, higher level of interaction, with the establishment of a comprehensive strategic partnership.

One of the important steps that contributed to the expansion of economic ties and an increase in the volume of trade was the establishment of the most favored nation regime in mutual trade. This allowed the two countries to reach the $9 billion mark for the first time in 2022, and in the first 7 months of this year, China became the main trading partner of Uzbekistan, with a total trade of $6.9 billion, which represents an increase of 30.5%.

In recent years, much attention has been paid to strengthening investment ties between the two countries. Over the period from 2017 to 2022, Chinese investors have shown a steady interest in Uzbekistan, investing heavily in agriculture and water management, electricity, textiles, engineering and transport.

The total volume of investments from the Middle Kingdom in this period amounted to about $11 billion. It is important to note that a significant share of this amount - $2.2 billion, was disbursed only in 2022.

There are 2,141 enterprises in Uzbekistan with the participation of Chinese investments, including 275 established in 2022. The largest among them are: Huawei, ZTE, Wenzhou Jinsheng Trading, JV Peng Sheng, Sinotruk , Heng Bang Textile Central Asia.

Such impressive progress in strengthening Uzbek-Chinese relations opens up even broader horizons for future cooperation for both countries.

Strengthening interaction at the political, economic and cultural levels establishes solid fundamental principles for long-term cooperation, contributing to prosperity and stability both in this region and beyond.

The continuation of this successful cooperation can serve as an inspiring example for other states, showing how significant heights in the development of international relations can be achieved through mutual respect and joint efforts.

Today there is a significant dynamics of cooperation between Uzbekistan and China in the "green energy". This implies cooperation in the use of technologies that contribute to environmental efficiency and sustainability, including innovative solutions and advanced technologies to achieve eco-goals.

Currently, China is experiencing a strong growth in the renewable energy (RES) sector. This upward trend is projected to continue over the next ten years, mainly due to the development of solar energy.

Despite the fact that coal energy still plays a significant role in the country’s energy balance, experts say that its share will gradually decrease in the coming years. This will be the result of a booming renewable energy sector.

According to the National Energy Administration of China (NEA), at the end of April this year, the total capacity of the country’s power plants was about 2.65 TW, an increase of 9.7% year on year.

Including the installed capacity of wind power was about 380 GW, an increase of 12.2% year on year; solar energy – about 440 GW (+36.6%). Over the past 4 months, solar power plants with a total capacity of more than 48 GW have been installed in China.

China added 87.41 GW of solar capacity in 2022, up 60.3% from a year earlier, a record high. This year, the result seems to be surpassed.

Thus, in 2022, China added more than 125 GW of solar and wind power plants, and their total installed capacity reached 758 GW. This represents approximately 29.5% of the entire Chinese energy system.

According to the energy development roadmap, China intends to commission more than 160 GW of renewable energy generation by the end of 2023. At the same time, it is expected that about 97 GW will be provided by solar, and another 65 GW by wind power plants.

According to the China Photovoltaic Industry Association (CPIA), the net growth of solar photovoltaic power will grow to more than 1.7 TW in the next 10 years.

Experts attribute this growth dynamics to the commissioning of large-scale solar energy projects postponed due to the consequences of the pandemic, as well as to the continuous and rapid expansion of the solar equipment market sector, in which China currently dominates the world.

In 2022, global solar PV production capacity grew by almost 40% to about 640 GW, with 90% of the growth compared to 2021 coming from China.

At the same time, according to the forecasts of the International Energy Agency (IEA), China is actively investing in renewable energy and intends to increase investment to $271 billion by the end of 2023.

Almost the same amount is invested in renewable energy by the OECD (Organization for Economic Cooperation and Development) countries. China plans to increase investment in renewable energy by 13%. OECD countries are investing $277 billion in this area.

Forecasts also show that China’s share in the global investment structure in renewable energy in 2023 will be 41%, and the share of OECD countries will be 42%. The IEA also notes that China’s share in the global power structure of wind generators under construction reached 31%, while the share of solar generators was 52%.

An important factor in the development of renewable energy in China is the availability of its own raw material base. The country is one of the top three producers of polysilicon, silver and copper, materials used to make solar panels. The PRC accounts for 85-97% of the world’s installed capacity at every stage of the supply chain.

It is noted that the share of China in the world production of polysilicon from 2010 to 2022 increased from 30% to 85%.

Thanks to this, in China, the unit costs for the construction of solar panels are lower than in most OECD countries: according to experts from the Global Energy Association, in the USA in 2021 they were $1090 per kW of power, in the European Union - $810 per kW, and in China – $630 per kW.

At the same time, it is important to highlight that China currently accounts for about 33% of the global volume of renewable generation and more than half of the energy storage capacity.

Today, the development of green technologies is considered in Uzbekistan as an important area for sustainable and environmental growth of the country’s green economy.

At the last summit of the Heads of State of "Central Asia and China" in the Chinese city of Xi’an, Uzbekistan and China agreed to build 11 solar and wind power plants with a total capacity of 4.8 GW worth $4.4 billion, which in turn will give impetus to cooperation in this direction .

Uzbekistan and China are already actively working in this direction. In February of this year, Chinese companies expressed their readiness to invest $2 billion in the implementation of renewable energy projects with a capacity of 2 GW in Jizzakh and Tashkent regions. The launch of the first phases of these projects is scheduled for the end of 2023, and bringing them to full capacity in 2024.

These power plants are expected to generate 5.2 billion kWh of electricity per year and save 1.3 billion m3 of natural gas.

Along with this, the Chinese side has begun to create a solar power plant with a capacity of 700 MW in the Tashkent region.

It is important to note that our countries have also made significant progress in the field of hydropower.

In particular, the Chinese side will participate in the preparation of a feasibility study for the projects "Construction of the cascade of the Naryn hydroelectric power station in the Namangan region" and "Construction of the cascade of the Aigain hydroelectric power station in the Bostanlyk district of the Tashkent region."

This will contribute to the effective implementation of the “Program for the transition to a green economy and ensuring green growth in the Republic of Uzbekistan until 2030”, approved in December 2022.

According to the Program, by 2030 it is planned to increase the production capacity of RES to 15 GW and bring their share in the total volume of electricity production to more than 30%.

In general, in the modern world, where global challenges require coordinated and multifaceted solutions, cooperation between countries is becoming a necessity, reflecting the maturity and understanding of the importance of joining efforts.

Uzbekistan and China serve as an example of such a partnership, embodying a willingness to work together on global issues and contribute to sustainable development in the Central Asian region.

Realizing China’s vast experience in this area, Uzbekistan finds it very valuable the opportunity to establish practical partnerships in the field of "green development", through the use of renewable energy sources such as solar and wind energy, efficient energy-saving technologies, improved resource and waste management systems, as well as other extremely important measures aimed at protecting the environment. These steps are key to achieving environmental sustainability and preserving natural heritage for future generations.

The path to sustainability and prosperity requires us not only to innovate and develop technologically, but also to cooperate based on trust and understanding. Uzbekistan and China, supporting each other, continue their path aimed at rapprochement and strengthening of interaction in order to overcome challenges and build a future where prosperity and ecological harmony flourish.

Zafar Nurmatov

Head of Economic Research Department, International Institute of Central Asia