Uzbekistan signs $4.7bn energy deals and outlines plans for two more nuclear power plants
Foreign firms including ACWA Power, EDF and Toyota Tsusho are involved in projects covering 3,000 MW of generating capacity and 400 MW of storage. Tashkent is also preparing 128 oil and gas exploration blocks for investors and pursuing a future electricity connection to Europe.
Uzbekistan has signed six energy agreements valued at $4.7 billion and revealed plans for two additional nuclear power plants, aiming to draw foreign investment and address rising energy demand. The agreements, announced during talks in Tashkent, cover 3,000 megawatts of new generating capacity, along with 400 megawatts of energy storage.
Prominent firms involved in these agreements include ACWA Power, AMEA Power, Toyota Tsusho, Sojitz, EDF, Nebras Power, StorEn, and CRE International. Uzbekistan has attracted a total of $35 billion in energy investment over the last ten years, but President Mirziyoyev acknowledged the need for a more integrated energy system to avoid the over-concentration of power plants in certain areas.
The country's first National Energy Master Plan, which covers the period until 2050, is expected to be finalized by July 2027. Meanwhile, the government intends to expand generating capacity to 22 GW by 2030, construct 5,000 kilometers of power lines and 16 substations, and increase storage capacity to 4.5 GW. By 2030, annual electricity output is projected to surpass 129 billion kWh, with renewables, including hydropower, accounting for 54% of generation, up from the current 31%.
Additionally, 12 manufacturing projects worth $850 million are proposed to bolster domestic production of energy equipment.
The World Bank's division director for Central Asia, Najy Benhassine, highlighted the need for more generation and better networks to support the country's rapid growth. Neil McKain, the International Finance Corporation's country manager for Uzbekistan and Turkmenistan, identified energy efficiency as an area that requires improvement in the energy sector, which remains highly energy-intensive.
Meanwhile, the construction of Uzbekistan's first nuclear power plant, a joint venture with Russia's Rosatom, is underway. The plant, located in Jizzakh, is expected to provide 2,110 MW of electricity upon completion in 2034-2035.
In terms of oil and gas investment, BP and SOCAR are actively exploring six blocks in the Ustyurt region, with preliminary estimates suggesting these blocks could contain 5.8 trillion cubic meters of natural gas and 560 million tonnes of liquid hydrocarbons. Uzbekistan also plans to expand its domestic processing capabilities through a methanol-to-olefins project in Bukhara, as well as upgrade two oil refineries and introduce private participation in liquefied petroleum gas distribution.
However, President Mirziyoyev acknowledged the presence of various barriers to investment, including bureaucracy and corruption, and called for reforms in financial and capital markets.
Written by urgent.news from Euronews Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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