Uzbekistan accelerates energy modernisation with $100mn World Bank loan

A $150mn financing package, including $100mn from the World Bank, will support the modernisation of Uzbekistan’s power grid and integration of renewable energy in key regions.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Uzbekistan plans to increase the share of renewable energy to 54% of total electricity generation by 2030, up from the initially announced 40%. This transition comes amid rapidly growing energy consumption, which is expected to reach 121 billion kilowatt-hours by 2035, according to national projections.

In this context, the World Bank approved on May 15 a $100mn concessional credit to support Uzbekistan in integrating renewable energy into its electricity distribution system and improving supply reliability in priority regions such as Karakalpakstan and the Surkhandarya region. The public utility Regional Electric Power Networks (REPN) will contribute an additional $50mn, bringing the total investment to $150mn.

Aging infrastructure under strain

According to the World Bank, Uzbekistan’s electricity distribution system faces major inefficiencies, with technical losses estimated at 13% in 2024. More than half of the infrastructure has exceeded its operational life, with some facilities in use for over 30 years. The programme aims to modernise 6,000 km of low-voltage distribution lines, install or replace 1,200 transformers with a combined capacity of 250 MVA, and connect 150,000 smart meters to reduce commercial losses.

The plan, running through 2030, also includes the installation of 4,000 concentrators to prepare for automation and digitalisation of the network. These upgrades are essential to handle increasing volumes of renewable electricity generated by small and medium-sized enterprises and households.

Building a skilled workforce to support the transition

Alongside technical upgrades, Uzbekistan is working to strengthen its human capital. Universities such as Tashkent State Technical University and Kimyo International University are developing engineering programmes focused on renewable energy. Vocational training centres are also helping fossil sector technicians transition to solar, wind, and grid-related professions.

The need for qualified labour is increasing as new projects are launched. In April 2025, Uzbekistan announced major developments: a 1,000 MW wind power plant in Karakalpakstan, a 500 MW solar plant in Jizzakh, and nearly 3,000 micro hydropower stations planned by the end of 2026.

A labour market under pressure

With only 41% of higher education graduates employed within two months of graduation in 2024, the energy sector offers a key opportunity to absorb available labour. The new programme backed by the World Bank is expected to integrate up to 50 MW of locally produced renewable energy and cut CO₂ emissions by 450,000 tonnes per year by 2029.

Efforts are also underway to strengthen REPN’s financial viability, as commercial losses and unpaid bills have placed significant pressure on the state budget. The programme includes governance reforms, financial management improvements, and strategic planning for distribution infrastructure.

Performance targets and social inclusion

The World Bank aims for a 90% customer satisfaction rate with REPN services by 2029. Additionally, the proportion of women in technical and managerial roles at the company is projected to rise from 9% in 2025 to 14% through targeted training and recruitment measures.

These efforts complement broader national initiatives to increase female participation in the energy sector. At the Women’s Power Forum in March 2025, ACWA Power Uzbekistan reported that 26% of students at its partner Shirin Energy College were female and that women held 20% of leadership positions at the company.

China's power generation capacity recorded strong growth in October, driven by continued expansion of solar and wind, according to official data from the National Energy Administration.
The 2026–2031 offshore programme proposes opening over one billion acres to oil exploration, triggering a regulatory clash between Washington, coastal states and legal advocacy groups.
The government of Mozambique is consolidating its gas transport and regasification assets under a public vehicle, anchoring the strategic Beira–Rompco corridor to support Rovuma projects and respond to South Africa’s gas dependency.
The British system operator NESO initiates a consultation process to define the methodology of eleven upcoming regional strategic plans aimed at coordinating energy needs across England, Scotland and Wales.
The Belém summit ends with a technical compromise prioritising forest investment and adaptation, while avoiding fossil fuel discussions and opening a climate–trade dialogue likely to trigger new regulatory disputes.
The Asian Development Bank and the Kyrgyz Republic have signed a financing agreement to strengthen energy infrastructure, climate resilience and regional connectivity, with over $700mn committed through 2027.
A study from the Oxford Institute for Energy Studies finds that energy-from-waste with carbon capture delivers nearly twice the climate benefit of converting waste into aviation fuel.
Signed for 25 years, the new concession contract between Sipperec, EDF and Enedis covers 87 municipalities in the Île-de-France region and commits the parties to managing and developing the public electricity distribution network until 2051.
The French Energy Regulatory Commission publishes its 2023–2024 report, detailing the crisis impact on gas and electricity markets and the measures deployed to support competition and rebuild consumer trust.
Gathered in Belém, states from Africa, Asia, Latin America and Europe support the adoption of a timeline for the gradual withdrawal from fossil fuels, despite expected resistance from several producer countries.
The E3 and the United States submit a resolution to the IAEA to formalise Iran's non-cooperation following the June strikes, consolidating the legal basis for tougher energy and financial sanctions.
The United Kingdom launches a taskforce led by the Energy Minister to strengthen the security of the national power grid after a full shutdown at Heathrow Airport caused by a substation fire.
New Delhi is seeking $68bn in Japanese investment to accelerate gas projects, develop hydrogen and expand LNG import capacity amid increased openness to foreign capital.
Germany will introduce a capped electricity rate for its most energy-intensive industries to preserve competitiveness amid high power costs.
Under political pressure, Ademe faces proposals for its elimination. Its president reiterates the agency’s role and justifies the management of the €3.4bn operated in 2024.
Solar and wind generation exceeded the increase in global electricity demand in the first three quarters of 2025, leading to a stagnation in fossil fuel production according to the latest available data.
The Malaysian government plans to introduce a carbon tax and strengthen regional partnerships to stabilise its industry amid emerging international regulations.
E.ON warns about the new German regulatory framework that could undermine profitability of grid investments from 2029.
A major blackout has disrupted electricity supply across the Dominican Republic, impacting transport, tourism and infrastructure nationwide. Authorities state that recovery is underway despite the widespread impact.
Vietnam is consolidating its regulatory and financial framework to decarbonise its economy, structure a national carbon market, and attract foreign investment in its long-term energy strategy.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.