Issues of increasing energy efficiency and developing the energy market were discussed

On January 14, President Shavkat Mirziyoyev attended a presentation on improving energy efficiency and implementing market mechanisms in the electricity sector, the press service of the head of our state reports.

According to international expert analysis, Uzbekistan is among the most energy-intensive countries. In particular, buildings account for almost 50 percent of final energy consumption in the country, and energy consumption per square meter is several times higher than in European countries.

In this regard, a separate agency was created last year to implement systemic energy efficiency reforms. The new agency is tasked with reducing energy consumption in the economy by at least 20 percent by 2030, and in government agencies and social organizations by 15 percent.

The presentation reviewed the agency’s work plans for 2026.

Most buildings in the country were constructed in the 1960s and 1970s, and their energy losses remain high. Therefore, large-scale efforts to improve the energy efficiency of social facilities and residential areas are planned. This year, 150 billion soums in subsidies and compensation will be allocated for these purposes.

It was noted that in improving the energy efficiency of social facilities, of which there are more than 30,000 in the republic, special attention must be paid to expanding the participation of international financial institutions and attracting private investment.

For example, as part of this year’s investment program, 770 social facilities will be modernized based on energy efficiency standards. Funds from international financial institutions totaling $264 million will be attracted for this purpose.

The development of mechanisms for generating revenue through energy conservation, including the development of energy service companies (ESCOs), and the formation of a corresponding market, were also discussed.

Plans were announced for the widespread use of digital technologies and artificial intelligence in building energy audits, as well as in the design and modeling of facilities based on energy efficiency standards.

Specific plans for improving energy efficiency in the industrial sector were also identified. Specifically, solar panels are planned to be installed at 142 textile enterprises this year. This will allow businesses to save 722 million kilowatt-hours of electricity and 693 billion soums. It is also planned to modernize 300 pumps in the drinking water supply system.

Particular attention is paid to problems in the district heating system. Currently, high energy losses are due to the deterioration of some boiler houses and heating networks. Therefore, this year, as part of the modernization of boiler houses and heating systems and their conversion to a closed-loop system, it is planned to install 400 individual heating units and upgrade at least 100 kilometers of heating networks.

Responsible officials have been instructed to develop energy efficiency standards and effective regulations for the construction, repair, and renovation of buildings.

The presentation discussed measures being taken to introduce competitive market mechanisms in the electricity sector.

Specifically, the transfer of low-voltage networks to the private sector will begin in the Samarkand region, and in the next stage, it is planned to scale this practice up to the Andijan, Jizzakh, Namangan, Syrdarya, and Tashkent regions and the city of Tashkent. This is expected to significantly reduce losses by attracting investment in grid upgrades.

Information on the progress of the wholesale electricity market development was presented.

A list of wholesale consumers consuming over 10 million kilowatt-hours of electricity annually has been compiled. For these enterprises, it is proposed to introduce a system of electricity procurement on the wholesale market under direct contracts with hourly pricing.

Work is currently underway to create separate regulators for the energy and utilities sectors. Based on international experience, a proposal has been put forward to create a single regulator.

Having approved the proposals, the President of our country emphasized the importance of improving energy efficiency, rational use of energy resources, and creating a competitive environment in the energy market, and issued relevant instructions to responsible officials.

The prosecutor’s office and internal affairs agencies have been tasked with ensuring strict compliance with legal requirements and the inevitability of accountability in the areas discussed, as well as closely cooperating with local governments (khokimiyats) to ensure the unconditional implementation of the envisaged measures.