Uzbekistan has issued a presidential decree to reform electricity tariffs and accelerate land reclassification to support its national hydropower development program. The regulation provides the financial and administrative framework required to meet recently announced generation targets.
Within two weeks, a commission will set new procurement prices for electricity generated by the state-owned Uzbekhydroenergo. The updated tariffs must cover the operator’s operational costs and service the debt on its investment projects. All undistributed profits from the company between 2017 and 2025 will be used to increase its charter capital, while non-core assets are slated for sale through a state agency. The government also plans to launch a green energy certificate market within a month.
To speed up construction, the government introduced a ten-day procedure for converting agricultural and forest lands into industrial sites for power plants. In the Surkhandarya region, specific territories have been transferred to the Ministry of Energy for permanent use. Design organizations have received permission to use drones for surveys in areas that lack infrastructure.
The program aims to establish a domestic value chain by utilizing local firms for design, manufacturing, and construction. Uzbekhydroenergo is expected to add 550 MW of new capacity by 2032 using its own resources. Project management will be handled by an internal customer service unit, and the Ministry of Emergency Situations will oversee construction risks alongside a dedicated safety center for hydraulic structures.
These initiatives are part of a broader goal to increase the country’s hydropower capacity by 140 percent and build 1,400 MW of pumped-storage capacity. In preparation for the expansion, the state operator has increased the proportion of independent directors on its board to 57 percent. The company holds a BB credit rating with a stable outlook from Fitch Ratings and follows international financial reporting standards audited by PwC.
