The European Bank for Reconstruction and Development approved a $66.4 million loan to fund the construction of a 230-kilometer high-voltage transmission line in Uzbekistan’s Khorezm region.
Minimum expenditure basket in Uzbekistan, also used to determine the poverty line, has risen by 4.3%, from 621,000 soums to 648,000 soums (from $49 to $51) per month. This adjustment, the second this year, reflects the upcoming increase in gas and electricity tariffs from 1 May.
Ministry of Energy and WB aim to jointly improve energy efficiency of Uzbekistan’s public buildings in a project. Over five years, hospitals, schools and kindergartens will improve thermal insulation, ventilation, air conditioning, and replace coal-fired boilers with solar collector heating systems.
During talks with the head of Uzbekistan, the president of Kazakhstan noted that the “Kazakh-Uzbek tandem is a vital necessity, and only through joint efforts is it possible to ensure sustainable development of our countries”. The presidents discussed enhancing cooperation across various sectors.
In late January, Uzbekistan’s gas production dropped 9.4% to 3.99 billion cubic meters from January 2023, though it remained higher than recent months. Oil, coal, gasoline, and diesel production also declined. The number of operational industrial enterprises decreased by 25,200.
Insufficient electricity production in Uzbekistan and imports from Turkmenistan led to limitations of up to 400 MW during peak hours on Sunday, due to a power transmission line accident, says the Energy Ministry.
Uzbekistan increased its natural gas exports to China in May, with supplies rising to $78.16 million, almost double the amount exported in April. Despite this increase in exports, the country’s gas production continues to fall.
Gas production in Uzbekistan fell by 9.8% in the first five months of the year compared to the same period last year, with production falling for the second consecutive month in May. Meanwhile, electricity production showed record growth in May, while growth in oil production slowed to 3.1%.
The Ministry of Natural Resources and the Korea Environmental Industry and Technology Institute (KEITI) will implement a $6.6 million grant project to transform the Jizzakh landfill, generate energy from landfill gas and recycle medical waste, among other things.
Uzbekistan continues to discuss the construction of a nuclear power plant with Rosatom, and in parallel it is exploring advances in small nuclear reactors. “The construction of a nuclear power plant is a very serious commitment for the state…We have to eliminate any risks,” the Energy Minister said.
At a meeting on energy supply in Uzbekistan, Shavkat Mirziyoyev discussed the expected rise in electricity consumption during the summer period. He criticised hokims and the Energy Minister for failing to calculate expected load coverage.
Uzbekistan experienced a 9.6% decline in gas production during Q1 2023, totaling 12.3 billion cubic meters, with electricity production also falling by 5%. The production of thermal energy and coal has fallen as well. This downturn is attributed to reduced tax rates and other industry challenges.
Uzbek Energy Minister Jurabek Mirzamakhmudov and Russian Deputy Prime Minister Alexander Novak convened in Moscow to discuss collaboration in gas, oil, and electricity sectors, including renewable energy, hydropower, and nuclear power plant construction.
President Mirziyoyev approved a public-private partnership program for the modernization of heating systems in Uzbekistan’s social facilities. In 2023, 500 billion soums are planned to be allocated for the modernization program, with 50% designated for the Fergana Valley regions.
The European Investment Bank approved $83.6 million loan for Uzbekistan’s solar energy program, implemented by UAE’s Masdar. Partnering with ADB, AIIB, and EBRD, EIB’s contribution forms part of a $396.4 million package to construct and operate three PV plants with a total capacity of nearly 900 MW.
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