ARTICLE
31 January 2022

Renewable Energy: Insight On Uzbekistan

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Unicase Law Firm

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Unicase Law LLP is a firm with operations in the region of Central Asia, including Uzbekistan, Kazakhstan and Kyrgyz Republic for over 10 years, also it is considered as one of the leading firms according to leading rating agencies. The firm’s expert knowledge in law and top-notch client service are recommended for Kazakhstan by the leading international legal directories such as The Legal 500, Chambers and Partners, IFLR 1000, and Asialaw Profiles.
Central Asia has great potential in renewable energy sources sector. According to the global environmental mission, Central Asian countries, including Uzbekistan, are rapidly developing the sector.
Uzbekistan Energy and Natural Resources

Central Asia has great potential in renewable energy sources (hereinafter the "RES") sector. According to the global environmental mission, Central Asian countries, including Uzbekistan, are rapidly developing the sector. Therefore, as part of RES development in Uzbekistan, the country is also developing legislation, RES project implementation processes and infrastructure. In the process, however, Uzbekistan faces certain challenges that may affect the future of RES sector in the country.

Potential investors are increasingly interested in RES projects in Uzbekistan. At the same time, they want to be informed about current projects, the problems investors face, and the regulation of RES sector in the country.

In this regard, Unicase below presents the most essential legislative amendments concerning RES sector, a list of the largest RES projects as well as force majeure in RES sector in Uzbekistan.

1. General overview

Uzbekistan pays special attention to the environmental situation in the country. Uzbekistan takes concrete measures for the transition to a green economy in the near future, including the development of RES.1

Thus, since 2017, Uzbekistan has accelerated relevant policy reforms and approved key acts for the transition to a green economy:2

1) In accordance with the Order of the President of Uzbekistan No. UP-5646 dated 1 February 2019, the Ministry of Energy was established.

2) The Law on the Use of Renewable Energy Sources (hereinafter the "RES Law") and the Law on Public-Private Partnership (hereinafter the "PPP Law") were adopted.

The above laws provide the legal and regulatory framework to accelerate the implementation of RES projects in Uzbekistan.

3) The Concept of Fuel and Energy Supply of the Country for 2020-2030 was adopted.3

This Concept describes that during the period 2020-2030 special attention will be given to the development of RES based generation (solar energy is a priority).

The Concept was developed by the Ministry of Energy with technical assistance from the World Bank and the Asian Bank.

4) The Master plan for the long-term development of the electricity sector in Uzbekistan was adopted.4

This Plan describes the development of the electricity sector, including RES.

The Plan was developed by international consultant Mott MacDonald.

5) The Strategy for the Transition to a Green Economy 2019-2030 (hereinafter the "Strategy 2019-2030") was adopted.5

According to the Decree of the President of Uzbekistan No. PP-4477 dated 4 October 2019, the Strategy 2019-2030 was approved. The Strategy 2019-2030 is one of the main key acts for the development of RES in Uzbekistan.</p>

The Strategy 2019-2030, inter alia, provides the development of the use of RES. In particular, the strategy provides bringing the share of RES to more than 25% of total electricity generation in Uzbekistan.7

The Strategy 2019-2030 provides two main measures to achieve the goals in RES sector:8

  • Transparent methods for selecting potential investors;
  • Localisation of production of renewable energy equipment. In order to implement the planned activities, the following are attracted:9
  • Foreign investments;
  • Loans and grants from international financial institutions;
  • Loans and grants from foreign governmental financial organisations;
  • Loans and grants from other foreign grantors.

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Footnotes

1. https://minenergy.uz/ru/lists/view/32#

2. Ibid

3. https://minenergy.uz/uploads/1a28427c-cf47-415e-da5c-47d2c7564095_media_.pdf

4. https://minenergy.uz/ru/lists/view/32#

5. Ibid

6. https://www.forbes.com/sites/llewellynking/2021/12/09/uzbekistan-seeks-global-partners-to-drive-its-solar-and-wind-revolution/?sh=434f017ebe89, https://www.dentons.com/ru/insights/alerts/2019/october/30/transition-of-the-republic-of-uzbekistan-to-a-green-economy

7. Ibid

8. Ibid

9. Ibid

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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