News
The World Bank will allocate $ 150 million to Uzbekistan for the development of a small hydropower sector
About 270 plots for the construction of small hydroelectric power stations were selected, most of which will be up to 1 MW. The WB will support construction through local banks and private investments.
The World Bank approved the provision of a preferential loan of $ 150 million to Uzbekistan to implement a new project aimed at developing a small hydropower sector and increasing the reliability of power supply throughout the country.
The project will be implemented with the participation of the private sector, including local developers of small hydroelectric power plants and banks.
The WB press release notes that by 2030 the demand for electricity in Uzbekistan will double and exceed 120 billion kWh. Despite the growth in electricity production in the country, about 10% of needs remain unsatisfied, which leads to interruptions in power supply, especially in the areas of areas and rural areas. The main reason is problems with the transfer and distribution of energy.
Small hydroelectric power plants (MGSP) with a capacity of 100 kW to 5 MW, using the existing network of irrigation channels, are able to increase the production of electricity in areas weakly secured by energy. They are a practical solution to increase the reliability of the power supply of the population and the private sector, and can also contribute to the development of the regions of Uzbekistan.
MGES is an economically effective solution and require minimal maintenance. They can use the existing network of irrigation channels to generate electricity. These factors make MGES an attractive tool for private investors interested in the production of renewable energy on a small scale.
“The Government of Uzbekistan plans to invest in the construction of about 3,000 MGPs and bring their installed capacity to 160 MW by 2026. This will additionally provide 280 thousand people with electricity. The new project, financed by the World Bank and implemented by the Ministry of Energy of Uzbekistan in 2025–2030, will contribute to the achievement of this goal. It will allow, through the banks of Uzbekistan, to provide local developers of the MGES access to financing necessary for their activities. In addition, the project will help to mobilize about $ 38 million private investments to expand the hydropower infrastructure throughout the country, ”said Tatyana Proskuryakova, regional director of the World Bank for Central Asia.
By 2030, the project will finance the construction of the MGES with a total capacity of up to 150 MW. It is expected that they will produce more than 520 gigavat hours of environmentally friendly electricity annually. In addition, the project will help reduce carbon dioxide emissions to 430,000 tons per year.
Currently, within the framework of the project, about 270 suitable sites for the construction of the MGES on existing irrigation channels in various regions of the country are preliminarily determined. Most of them (93%) have a power from 100 to 1,000 kW.
Electricity generated by the MGES financed as part of the project will be purchased by regional electric networks. It will become a source of renewable energy, will diversify the energy balance and improve the power supply of households and the private sector in the regions and rural areas, which were weakly secured by energy.
The project also has great potential for creating new jobs and stimulating production in the relevant industries and in small and medium -sized businesses, activating economic activity in areas of the MGES, as well as the assistance of the wider development of the regions of Uzbekistan.
Source
