Uzbekistan's energy sector is undergoing an important period of transformation. In a recent interview, Jurabek Mirzamakhmudov, Minister of Energy of Uzbekistan, gave a detailed account of the prospects and challenges facing the energy industry, and highlighted the cooperation opportunities between China and Uzbekistan in the energy sector. Now, let's focus on the highlights of the interview.
Challenges and priorities for Uzbekistan
The Uzbek energy sector is developing in a number of different directions. The development of renewable energy and the improvement of energy efficiency are important for Uzbekistan, including the reduction of energy consumption by industry and population. Currently Uzbekistan's per capita energy consumption is high, but the Uzbek Ministry of Energy sees great potential in this area. Specific measures include modernizing the power generation system by phasing out outdated and inefficient power plants and building and commissioning new generation capacity.
At the same time, coal-fired power generation will occupy a certain proportion in the future, and the Ministry of Energy plans to improve the efficiency and environmental protection of coal-fired power stations by building new units. Another important development direction is the modernization and development of the power grid, which involves the upgrading of energy transmission, storage systems and control systems. The country will also focus on digitization and automation of the industry, from the production of hydrocarbons to their processing, transportation and delivery to the end consumer, which will be more intelligent and efficient.
Another major development in the energy industry is the establishment of mutually beneficial cooperation with neighboring countries. Uzbekistan has established a joint venture with Tajikistan to build two hydropower stations. At the same time, a road map was signed with Kyrgyzstan and Kazakhstan for the construction of a hydropower station in Kyrgyzstan, which will further promote transnational cooperation. In addition, Tajikistan will be connected to the unified Central Asian energy system of the state of Uzbekistan. All of these priorities will shape the direction of the energy industry for years to come. Through close cooperation with neighboring countries, Uzbekistan will achieve resource sharing, technology exchange and market integration to bring sustainable energy supply and economic development to the entire region.
In what areas does Uzbekistan plan to cooperate with China on projects?
1) Solar and wind power projects. Uzbekistan is very interested in the valuable experience accumulated by China in the energy sector and plans to further expand cooperation with China in the energy sector. In the past, Chinese companies mainly acted as contractors or subcontractors on projects in Uzbekistan, but now Uzbekistan has reached agreements with leading Chinese companies to jointly advance the construction of solar and wind power plants. A number of projects are planned to start and receive the first production capacity by the end of the year.
2) New renewable energy sources, transmission lines and substations. The country plans to create more than 6 gigawatts of new renewable energy capacity and invest more than $600 million worth of new transmission lines and substations. There are a number of Chinese companies showing strong interest in these projects, including Energy China, China Poly Group and China Power Investment Corporation; China National Chemical Construction Corporation No. 7 (CC7) plans to develop not only renewable energy but also petrochemical projects in Uzbekistan.
3) Battery energy storage system. Chinese companies have expressed their willingness to cooperate with Uzbekistan in the construction of battery energy storage systems. In addition, Uzbekistan has reached agreements with Chinese companies such as the State Grid Corporation of China, Xi 'an Electric and TBEA on the construction of high-voltage power lines and substations, taking into account the commissioning of new power generation capacity. The estimated cost of these projects is more than $100 million.
What does Uzbekistan have to offer foreign investors?
Uzbekistan offers a dynamic market and economy for foreign investors, with strong domestic consumption and huge market potential. Uzbekistan is becoming an important player in the Central Asian market with great transit potential. Construction projects such as the Uzbekistan-Kyrgyzstan-China Railway and the Uzbekistan-Afghanistan-Pakistan railway are conducive to foreign investors' access to other markets in the region.
In terms of the investment climate, Uzbekistan offers stable legal guarantees, incentives for small industrial zones and free economic zones, and preferential policies for large projects. Above all, the President of Uzbekistan is the leader of reform and change, the guarantor of the constitution and stability. As a result, Ukraine is able to provide a stable investment environment for investors and actively establish new partnerships.
