Page 23 - Uzbek Outlook 2024

its export promises in order to meet its own domestic demand, much to the chagrin of Beijing.
Renewables
The government has embarked on reforms to enable the increase of renewables in electricity generation, with the aim to reach 40% of the energy mix by 2023. The Uzbek government recently raised its renewable generation targets by 2030 to 7 GW for solar PV (up from 5 GW) and 5 GW for wind (up from 3 GW).
Power
Increasing power generation requires investments in modernization and reconstruction of existing power plants, energy-efficient technologies, improvement of electricity metering systems and the development of renewable energy sources.
While Uzbekistan is moving toward greater use of renewables, natural gas still accounts for over 70% of power generation in the country. Its current ageing fleet of thermal power plants (TPPs) is inefficient and results in high gas consumption, avoidable CO2 emissions, and low renewable integration.
Typical of the investments the government is making is a new combined-cycled gas-turbine power plant in the Syrdarya region with a net effective capacity of around 1,580 MW (Syrdarya 2 CCGT plant) will provide more efficient and cost-competitive electricity to more than 3mn people, meeting an estimated 15% of electricity demand and comprising almost 10% of the currently installed power generation capacity in the country. With a thermal efficiency rating of over 60%, the Syrdarya 2 CCGT plant will also be twice as efficient as the current fleet of thermal power plants and contribute to greenhouse gas (GHG) emissions reduction, by displacing aged, inefficient generation in the country. A similar high efficiency gas turbine plant has been built in Tashkent.
Gas and electricity tariffs were last increased by Uzbekistan in August 2019. However, the liberalisation of energy prices and the reform of the energy sector have been repeatedly delayed.
The government intended to hike electricity and gas tariffs in February-March 2020, but put off the measure due to the coronavirus pandemic. The President had instructed not to raise electricity tariffs in 2021−2022, said Ulugbek Mustafoyev, chairman of the Regional Electric Grid, in October 2020.
Uzbekistan has 7.3mn electricity-consuming households, of whom 80% use up to 200 kWh of electricity per month on average. However, these households account for only 31% (5.7bn kWh) of the total electricity consumed by the population.
85% of the 4mn gas subscribers consume on average up to 500 cubic metres per month. At the same time, they account for only 35% (4.5 bcm) of the total consumption of the population.
Uzbekistan aimed to transition to a wholesale competitive electricity market by 2025 in three stages. The first stage involved liberalising electricity enterprises and licensing private enterprises that wanted to sell electricity. This market-based approach was supposed to enhance product quality and lower prices.
In the second stage, an electricity distribution system operator would be established, and the function of selling electricity to consumers would be
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