Uzbekistan to transfer power grid management to private companies by 2025
Uzbekistan is set to gradually transfer the management of its regional power grids to private companies, beginning with a tender in October 2024 for the Samarkand region. This initiative will extend to the Jizzakh and Syrdarya regions by 2025.
The decision was discussed by President Shavkat Mirziyoyev during an open dialogue with entrepreneurs in Nukus. The President underscored the significant role of the private sector in the country’s electricity sector, highlighting that public-private partnership projects worth $3.5 billion have already been launched. Additionally, 50 new initiatives valued at $31.5 billion are currently underway.
The phased transfer of power grid management is part of Uzbekistan's broader strategy to involve private companies in infrastructure projects. This move aligns with the government's efforts to increase private sector participation in various industries, including energy and mineral resources. Since the beginning of the year, entrepreneurs have secured rights to develop over 150 mineral deposits, and by the end of the year, an additional 300 sites will be made available to businesses. To address the growing demand for construction materials, plans are also in place to develop 172 quarries, with a combined reserve of 110 million cubic meters of construction sand.
In early August, President Mirziyoyev signed a newly revised law on the electric power industry. This legislation clarifies the relationships within the electricity market and defines the status, rights, and responsibilities of market participants. The Agency for the Development and Regulation of the Energy Market will oversee the implementation of general rules, issue licenses to market participants, and approve tariffs and payment methods.
This move towards privatization follows discussions held in the summer of 2022 about creating private companies to handle the retail sale of electricity, offering an alternative to the existing local branches of "Regional Electric Grids." These new companies are expected to focus on supplying energy to legal entities.
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