Uzbekistan to privatize power grid management by 2025
Uzbekistan to Privatize Regional Power Grid Management
Uzbekistan is gearing up to gradually hand over the management of its regional power grids to private companies, starting with a tender scheduled for October 2024 in the Samarkand region. This privatization initiative is expected to expand to the Jizzakh and Syrdarya regions by the following year.
President Shavkat Mirziyoyev announced this decision during an open dialogue with entrepreneurs in Nukus, emphasizing the vital role of the private sector in the country’s electricity sector. He noted that public-private partnership projects totaling $3.5 billion have already been initiated, with an additional $31.5 billion worth of projects in progress.
This phased transfer of power grid management is part of Uzbekistan’s broader strategy to involve private companies in infrastructure projects. It aligns with the government’s goal of increasing private sector involvement in key industries such as energy and mineral resources. Entrepreneurs have been granted rights to develop over 150 mineral deposits this year, with plans to open up 300 more sites by the end of the year. To meet the rising demand for construction materials, the development of 172 quarries with a total construction sand reserve of 110 million cubic meters is also in the pipeline.
In early August, President Mirziyoyev signed a revised law governing the electric power industry to streamline relationships within the electricity market and delineate the status, rights, and responsibilities of market participants. The Agency for the Development and Regulation of the Energy Market will be responsible for enforcing regulations, issuing licenses, and approving tariffs and payment methods.
This move towards privatization follows discussions from 2022 about establishing private companies to handle the retail sale of electricity, providing an alternative to the existing local branches of “Regional Electric Grids.” These new companies are expected to focus on supplying energy to legal entities, further diversifying the energy market in Uzbekistan.
