15 June 2021

Private enterprises allowed to sell electricity in Uzbekistan

In Uzbekistan, private enterprises were allowed to obtain a license to sell electricity, the press service of the Ministry of Energy said.

It is noted that at present, a sequence of transition to the wholesale competitive electricity market has already been developed, in the period 2021-2025, with the passage of three stages:

The first stage provides for the liberalization of electricity companies and obtaining licenses for private enterprises wishing to sell electricity. This market-based approach is expected to improve product quality and lower prices.

During the second phase of the transition to a competitive wholesale electricity market, an operator of the electricity distribution system will be created, and the functions of selling electricity to consumers will gradually be transferred to suppliers. These suppliers will be entitled to sell electricity to consumers on the basis of a license. Consumers will be able to purchase electricity through an online trading platform or through any supplier. Thus, suppliers will operate in a competitive environment, which leads to the emergence of better electricity supply offers.

The third stage – intraday (hourly) sales will be launched. In accordance with it, on the trading floor, on a planned basis, the online purchase and sale of excess or deficient volumes of hourly production and consumption of electricity will be carried out.

Also, the focus is on the issue of increasing the energy efficiency of the economic and social sectors. According to calculations, the energy intensity of the national economy is 2-2.5 times higher than the indicators of developed countries.

If in the world 23% of energy consumption falls on the residential sector, then in Uzbekistan – 40%. In particular, energy consumption per 1 square meter in Europe is 120-150 kW / h per year, while in Uzbekistan, this figure exceeds 390 kW / h, or 240-270 kW / h more.

In 2020, due to the implementation of organizational and technical measures, savings of 1.3 billion cubic meters of natural gas, 917.5 million kWh of electricity in the sectors of the economy were ensured.