Uzbekistan’s Wholesale Electricity and Gas Market Transition to be Completed by 2028
Uzbekistan is making significant strides towards enhancing the efficiency of its energy sector and reducing natural gas losses. The country’s Minister of Economy and Finance, Jamshid Kuchkarov, recently announced plans to complete the transition to wholesale electricity and natural gas markets by 2028.
In a speech at the St. Petersburg International Gas Forum, Kuchkarov outlined Uzbekistan’s timeline for these reforms. The shift to the wholesale electricity market is expected to be finalized by 2027, followed by the transition to the natural gas wholesale market in 2028. These reforms are part of broader energy sector changes aimed at increasing efficiency and attracting more companies to invest in the sector.
“We plan to complete the transition to the wholesale natural gas market by 2028, and to the electricity market by 2027. Gas production will be handled by our companies, within the framework of product-sharing agreements. There are also new smaller companies working in this area,” Kuchkarov stated.
One key strategy highlighted by the minister is the introduction of a public-private partnership (PPP) model in gas distribution networks. This approach is expected to further improve efficiency and reduce natural gas losses. A pilot project for this program is already underway in the Bukhara region.
“We have adopted a program to transfer gas distribution networks to a public-private partnership model as part of our reforms to increase efficiency and reduce natural gas losses. A similar project is being prepared in Bukhara, and we hope it will help to prevent gas losses,” Kuchkarov added.
Uzbekistan currently consumes nearly as much natural gas as Turkey, a country with a significantly larger population and economy. This underscores the importance of efficiency improvements in gas consumption for Uzbekistan. Through these reforms, Uzbekistan aims to modernize its energy sector, attract investment, and ultimately improve the reliability and affordability of energy for its citizens.
