Uzbekistan’s state-owned hydropower producer, Uzbekgidroenergo, has set an investment budget of $264.4 million for 2026, representing a 12 percent increase over the previous year. The allocation is part of a broader development and modernization program for the country’s hydroelectric sector currently valued at nearly $3 billion.
The 2026 funding plan relies on a combination of internal and external capital. The company plans to provide $135.4 million from its own reserves, while $129 million will be raised through debt. Of the borrowed funds, $109.1 million is expected from foreign direct investment, with $19.9 million to be secured through state guarantees. The limited use of sovereign guarantees reflects a policy shift aimed at reducing the national budget’s direct debt exposure.
The strategic project list includes eight facilities with a combined capacity of more than 1.5 gigawatts and an anticipated annual output of 4.9 billion kilowatt-hours. The most significant project is the 600-megawatt Upper Pskem pumped storage station – scheduled for commissioning in 2028. Once operational, the plant will produce more than 1 billion kilowatt-hours per year and function as a primary balancing unit for the national electricity grid.
Work is also progressing on several other large-scale hydroelectric plants across the country. The 248-megawatt Pskem station is slated for completion by 2030, following the 2028 launch of the 228-megawatt Naryn cascade. Other projects include the 140-megawatt Mullalak station and the 80-megawatt Kishtut cascade on the Topalang River, set to finish in 2028 and 2029 respectively.
The investment program also covers the rehabilitation of existing infrastructure. Modernization work at the Lower Bozsu and Shahrikhon cascades is scheduled to conclude in 2027. Upgrading these facilities is intended to extend their operational lifespan and increase generation capacity through the replacement of aging components rather than new dam construction.
