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Uzbek President: half of country`s power plants are worn out

Over 50% of power stations in Uzbekistan are worn out and burn twice as much fuel than new combined-cycle plants. President Shavkat Mirziyoyev held a meeting dedicated to the energy companies’ transformation on October 26. He urged to revamp these companies not at the expense of public funding, but through attracting the private sector.

Power supply companies are obliged to switch into an international financial reporting system. This would allow obtaining international credit ratings and listing Eurobonds in the future. Based on these, the relevant bodies were instructed to develop a three-year financial model, prepare business plans and attract foreign specialists to the board and supervisory boards to facilitate the transformation process.

Presently, long-term agreements on the purchase of energy with investors are signed at fixed prices due to the absence of the wholesale energy market rule. Mirziyoyev ordered to draw up a document defining the stages and rules for the transition to a competitive electricity market by integrating digital technologies in the domain.

The solar power plants in Jizzakh, Samarkand and Surkhandarya regions, wind stations in Bukhara region and Karakalpakstan, thermal power plants in Syrdarya and Surkhandarya constructions will be done under PPP framework.

Mirziyoyev instructed to leave electricity tariffs unchanged in 2021-2022. He ordered to carry out modernization works by reducing production costs, and not by increasing tariffs.

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