Page 15 - Uzbek Outlook 2022

4.4 Energy & power

The year of 2020 brought huge reforms in Uzbekistan’s power sector. Addressing world anxiety over
climate change, the government unveiled planned contributions in addressing the issue.

In particular, by 2030, the government aims to cut greenhouse gas emissions by 35% compared to
the levels recorded in 2010, as the climate in Central Asia is changing twice as fast as in other
regions due to the drying up of the Aral Sea.

At the national level, Uzbekistan is implementing a comprehensive strategy for its transition to a
green economy and a programme for the development of renewable and hydrogen energy. Some
200mn tree and shrub saplings are to be planted in the country annually.

By 2030, the energy efficiency of the economy is set to double, with the share of renewable energy
comprising at least 25%.

Moreover, the year 2022 is set to see the construction of two nuclear power units with the
participation of Russia's Rosatom, an initiative that has caused concern among Uzbeks and people
in neighbouring Kazakhstan.

The biggest projects in the energy sector are currently under way with the participation of Total Eren
(France), Masdar (UAE) and Aqua Power (Saudi Arabia).

Major lenders in the sector are EBRD and ADB.

Meanwhile, the volume of electricity generation at Uzbek hydroelectric power plants (HPPs) fell by
almost 23% in 2021 amid low water levels.

Power generation at HPPs fell to 5bn kWh in 2021, against 6.5bn kWh in 2019.

4.5 Construction

Uzbekistan’s construction boom regained momentum in 9M2021. Growth of 4.5% y/y was posted
compared to the 0.1% recorded by the sector in 1H 2021. Nevertheless, the figure is expected to
decline in 2022, following an order announced in September by President Shavkat Mirziyoyev, who
said: "Enough is enough. If we continue, the sewage system will not stand the strain, and neither will

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